The Can-Do Company Operates 365 Days a Year

The Can-Do Company operates 365 days a year. The average cash outflow is $250 a day. The fixed cost of replenishing the cash account is $12 a transaction. The interest rate is 4%. What is the optimal initial cash balance?

A) $2,136
B) $5,232
C) $6,809
D) $7,399
E) $7,822