BullsNBears, a Purveyor of fiNancial Databases, Estimates It They Disburses

BullsNBears, a purveyor of financial databases, estimates it they disburses $440,000 monthly in order to pay bills. The firm's opportunity rate is 5%. The fixed cost of transferring money is $25 per
Transfer. Based on historical data, the standard deviation of monthly cash flows is $15,000 and the
Lower cash balance limit is $20,000. For Miller-Orr model questions, assume the interest rate is
0) 5% per month.
Using the Miller-Orr model, what is the optimum initial cash balance?

A) $9,449
B) $11,485
C) $21,674
D) $22,970
E) $29,449