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Maintain its cash account at minimum level

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Reference no: EM131892033

Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $259,000 but expects the standard deviation in net daily cash flows to be $13,400, the effective annual rate on marketable securities to be 3.3 percent per year, and the trading cost per sale or purchase of marketable securities to be $34.50 per transaction. What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131892033

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