What is the optimal withdrawal size

Reference no: EM133332183

Question: Suppose you have weekly cash expenses of $150. The bank charges $0.25 every time cash is withdrawn. The bank pays 1.5% interest per year. Given this information, what is the optimal withdrawal size? What is the average amount of cash on hand? How often should you withdraw funds? Show your calculations.

Reference no: EM133332183

Questions Cloud

What is the value of chaney : What is the value of Chaney? Chaney Corp. has an EBIT of $1.87 million per year that is expected to continue in perpetuity. The unlevered cost of equity

What is the firms cost of equity capital : What is the firm's cost of equity capital after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?

What is the yield to maturity of this bond : The bond has a coupon rate of 3.4 percent paid annually and matures in 16 years. What is the yield to maturity of this bond?

What would be the impact on the tax shield : Apple currently has $108B in debt and $100B worth of cash. Assuming that Apple plans to keep its level of debt constant forever, and that its marginal tax rate

What is the optimal withdrawal size : what is the optimal withdrawal size? What is the average amount of cash on hand? How often should you withdraw funds? Show your calculations.

What is the most challenging aspect of the npv method : What is the most challenging aspect of the NPV method? (Please identify all the variables you use in your calculation when you use a calculator.

What is the main shortcoming of the irr approach : What is the main shortcoming of the IRR approach? (Please identify all the variables you use in your calculation when you use a calculator.

What is the project initial cash ?ow for net working capital : The BU Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000.

What is white privilege really : Briefly explain how the author of "What is White Privilege Really?" Cory Collins differentiates between bias and racism.

User Account

All Pages