Cash position using EOQ model

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AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $5200 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $280. The interest rate is 2.50%. What are the total costs (annual storage costs + annual order costs) associated with the EOQ?

Reference no: EM131620216

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