Your fiRm Spends $35,000 a Week to Pay Bills and Maintain

Your firm spends $35,000 a week to pay bills and maintain a lower cash balance limit of $10,000. The standard deviation of the disbursements is $7,000. The applicable weekly interest rate is .055
Percent and the fixed cost of transferring funds is $40. What is your cash balance target based on
The Miller-Orr model?

A) $10,156
B) $12,990
C) $18,884
D) $23,878
E) $25,726