In the cash balance model from Example 12.6, is the $250,000 minimum cash balance requirement really “costing” the company very much? Find out by rerunning the simulation with minimum required cash balances of $50,000, $100,000, $150,000, and $200,000. Use the RISKSIMTABLE function to run all simulations at once. Comment on the outputs from these simulations. In particular, comment on whether the company appears to be better off with a lower minimum cash balance.
Example 12.6
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