Penco Supply Spends $428,000 a Week to Pay Bills and Maintains

Penco Supply spends $428,000 a week to pay bills and maintains a lower cash balance limit of $75,000. The standard deviation of its disbursements is $18,900. The applicable interest rate is 5 percent and the fixed cost of transferring funds is $65. What is the firm's optimal initial cash balance based on the BAT model?

A) $150,600
B) $158,929
C) $170,096
D) $221,506
E) $240,553