QueStion 8 The daily net cash flows of Flush ltd vary randomly with a mean of so and a standard deviation of $16 000. The company can earn an average of 10%o on short-term investments, whilst its marginal yield from long-term investments is 14%. The bank charges the company overdraft interest at the rate of 10.5% plus a 0.5% overdraft service fee, but makes no charge for the unused portion of its overdraft limit. The fixed cost per transaction for short-term investment or disinvestment has been estimated at $10. For transferring money in and out of long-term investments the cost is about $250. The company uses the Miller-Orr model for controlling its bank balance What is the return point for Flush Ltd's bank balance and the upper and lower limits? Assume 365 days per year• QUESTION 8 • The daily net cash flows of Flush Ltd vary randomly, with a mean of $0 and a standard deviation of $16 000. The company can earn an average of 10% on short-term investments, whilst its marginal yield from long-term investments is 14%. The bank charges the company overdraft interest at the rate of 10.5% plus a 0.5% overdraft service fee, but makes no charge for the unused portion of its overdraft limit. The fixed cost per transaction for short-term investment or disinvestment has been estimated at $10. For transferring money in and out of long-term investments the cost is about $250. The company uses the Miller-Orr model for controlling its bank balance. • What is the return point for Flush Ltd's bank balance and the upper and lower limits? Assume 365 days per year