The Norris Company Is Trying to Determine Its Optimal Average

The Norris Company is trying to determine its optimal average cash balance. The firm has determined that it will need $5,000,000 net new cash during the coming year. The fixed transaction cost of converting securities to cash is
$50, and the firm earns 10 percent on its marketable securities investments.
-According to the Baumol model, what should be Norris' average cash balance?

A) $35,356
B) $ 3,536
C) $22,157
D) $70,711
E) $42,918