Given the following information about cash management of the Evergreen Company: Average cash payment is $120,000 per month. The company invests spare cash in Treasury Bills at an annual interest rate of 3.90%. The cost of each transaction of Treasury bills is $25. What is the average cash balance of the Evergreen Company?   (no excel pls)   a. $21,483   b. $12,403   c. $8,771   d. $15,191   e. $42,967

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Given the following information about cash management of the Evergreen Company: Average cash payment is $120,000 per month. The company invests spare cash in Treasury Bills at an annual interest rate of 3.90%. The cost of each transaction of Treasury bills is $25. What is the average cash balance of the Evergreen Company?

 

(no excel pls)

 

a. $21,483

 

b. $12,403

 

c. $8,771

 

d. $15,191

 

e. $42,967

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