The Miller-Orr Model

The Miller-Orr model:

A) Is more simplistic than the BAT model.
B) Analyzes cash balances within both an upper limit and a lower limit as set by management.
C) Bases the optimal level of cash solely on the opportunity costs of holding cash.
D) Supports the argument that the target cash balance declines as order costs increase.
E) Is based on cash flows that randomly fluctuate.