BAUMOL MODEL (12 POINTS)

If Fixed Cost are $15,000 and the Total Cash needed is $250,000 calculate the

1. Target CashBalance
2. OpportunityCost
3. TradingCost
4. TotalCost

using the Baumol Model. Interest Rate is 6.50%

INSTRUCTION:(SHOW YOUR CALCULATIONS AND ROUND TO 2 DECIMAL PLACES)