Fena Company has experienced a stochastic demand for its product, which results in fluctuating cash balances randomly. Determine the optimal cash balance, and average cash balance. check the attached...

Fena Company has experienced a stochastic demand for its product, which results in fluctuating cash balances randomly.

Determine

• the optimal cash balance, and


• average cash balance.

check the attached photo for additional info

Extracted text: Fixed cost of a securities transaction P100 Variance of daily net cash flows P1,000 Daily interest rate on securities (6%/360) 0.000167