Penco Supply Spends $319,600 a Week to Pay Bills and Maintains

Penco Supply spends $319,600 a week to pay bills and maintains a lower cash balance limit of $65,000. The standard deviation of its disbursements is $12,900. The applicable interest rate is 3.26 percent and the fixed cost of transferring funds is $43. What is the optimal initial cash balance based on the BAT model?

A) $167,154
B) $210,929
C) $168,753
D) $221,506
E) $209,385