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Miller-Orr Cash Management Approach

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A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000. Explain what each of these points represents; then explain how the system will work.

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The solution examines Miller-Orr cash management approach. The points the represent each are provided.

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A company uses a Miller-Orr cash management approach with a lower limit of $50,000, an upper limit of $130,000, and a target balance of $75,000. Explain what each of these points represents; then explain how the system will work.

Lower Limit = $50,000
Return Point = ...

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