A firm maintains a minimum cash balance of Rs 20,000. Standard deviation of the daily cash flow is Rs 2,500. The annual interest rate is 9%. The conversion cost is Rs 50 per transaction. Find out the...

A firm maintains a minimum cash balance of Rs 20,000. Standard deviation of the daily cash flow is Rs 2,500. The annual interest rate is 9%. The conversion cost is Rs 50 per transaction. Find out the upper limit, return point and average cash balance using the Miller—Orr technique.