1.All-Night Motels use the Miller-Orr model to manage cash. It keeps a minimum cash level of $43,000, an upper cash level of $125,000 and a target balance of $80,000.

a.If the cash balance reaches $127,000, what should All-Night Motels do?

b.If the cash balance is between $125,000 and $80,000, what should All-Night Motels do?

c.If the cash balance is between $80,000 and $43,000, what should All-Night Motels do?

d.If the cash balance reaches $41,000, what should All-Night Motels do?