Hi John,
Thank you for the lecture - I fully understand the arithmetic in your lecture (example 2) and seems relatively straightforward. Why do you say that the model is not practical?
Thanks!
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Baumol model
5y ago#1I say it is not very practical for most businesses. The reason is that it assumes a need for cash during the year at a constant rate, which is not likely to be the case fo most business.
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