How much should the business transfer each time, Operation Management

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How much should the business transfer each time

Problem

Cash management: A business expects to move $800,000 from its interest-bearing account into cash over 1 year. The interest rate is 9% and the cost per transfer is $180. How much should the business transfer each time? What is the total cost of cash management?

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Operation Management: How much should the business transfer each time

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Operation Management: How much should the business transfer each time

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