The management of the Keribels Company wishes to apply the Miller-Orrmodel to manage its cash investments. They have determined that thecost of either investing in or selling marketable securities is P 100. Bylooking at the Keribels Company's past cash needs, they have determinedthat the variance of daily cash flow is P 75,000. Keribels Company'sopportunity cost of cash per day is 0.05%. Based on their experience thecash balance should not fall below P 50,000. WHAT IS THE UPPER LIMIT?(Use a number, no decimal value, no currency, no space, no commas)

In this we have to use Miller Orr Model for cash management.

he management of the Keribels Company wishes to ap odel to manage its cash investments. They have deterr ost of either investing in or selling marketable securities oking at the Keribels Company's past cash needs, they at the variance of daily cash flow is P 75,000. Keribels pportunity cost of cash per day is 0.05%. Based on thei ash balance should not fall below P 50,000. WHAT IS TH Ise a number, no decimal value, no currency, no space,

he management of the Keribels Company wishes to ap odel to manage its cash investments. They have deterr ost of either investing in or selling marketable securities oking at the Keribels Company's past cash needs, they at the variance of daily cash flow is P 75,000. Keribels pportunity cost of cash per day is 0.05%. Based on thei ash balance should not fall below P 50,000. WHAT IS TH Ise a number, no decimal value, no currency, no space,

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Kindly don't try to provide the answer from Chegg as they are incorrect (thoroughly checked). If it is possible to be solved in excel, then please do that.
The management of the Keribels Company wishes to apply the Miller-Orr model to manage its cash investments. They have determined that the cost of either investing in or selling marketable securities is P 100. By looking at the Keribels Company's past cash needs, they have determined that the variance of daily cash flow is P 75,000. Keribels Company's opportunity cost of cash per day is 0.05%. Based on their experience the cash balance should not fall below P 50,000. WHAT IS THE LOWER LIMIT? (Use a number, no decimal value, no currency, no space, no commas)

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