a truss above, a home builder in the united states, secures products such as roofing shingles, cabinets, and plumbing materials from a variety of domestic and international suppliers. is the practice of using outside suppliers to help the contractor build homes.

Gold star co. and silver star co. both manage their cash flows according to the miller orr model. gold star's daily cash flow is controlled between $100,000 and $200,000, whereas silver star's daily cash flow is controlled between $150,000 and $300,000. the annual interest rates gold star and silver star can get are 10 percent and 9 percent, respectively, and the costs per transaction of trading securities are $2,000 and $2,500, respectively. a. what are their respective target cash balances? b. which firm's daily cash flow is more volatile?