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Business, 24.02.2020 23:26 shygrl05

Rosie O'Grady's spends $98,000 a week to pay bills and maintains a lower cash balance limit of $75,000. The standard deviation of the disbursements is $12,200. The applicable interest rate is 4.36 percent and the fixed cost of transferring funds is $38. What is the total cost of holding cash based on the BAT model?
a.$4,432
b.$3,862
c.$2,054
d.$4,911
e.$4,109

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Rosie O'Grady's spends $98,000 a week to pay bills and maintains a lower cash balance limit of $75,0...

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