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...



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

































May 22, 2022
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