C. Cash management, type 1. a. total expected cash receipts for the year ($2 million) b. the cost to transfer funds from the cash account to an interest-bearing account (520) c. the interest rate on the interest-bearing account (5.0%) 1. What must the cash balance reach before the company transfers funds to the interest bearing account if the company want to reduce the total costs associated with holding cash (that is, the total annual cost of transferring funds plus the total interest foregone by holding case)? 2. Based on the answer to question 1, how frequently should the company move cash from the cash account into the interest-bearing account? 3. If the company transfers funds as frequently as indicated in question 2, what will the company's total annual costs to maintain the cash account be? D. Cash management, type 2. A company's cash balance varies randomly from day to day. Select a value for the variance of daily cash balances (500 million). Assume the costs to transfer fund to or from an interest bearing account and the annual interest rate on funds held in the interest bearing account are the same as selected in part C above. Assume the lower limit selected by the company equals the variance selected divided by 10,000. 1. When the company's cash balance reaches the lower limit, how much money should be added to the cash account by taking money out of the interest-bearing account? 2. At what cash account balance will funds be moved from the cash account to the interest earning account? 3. How much will be moved from the cash account to the interest bearing account when the cash account balance reaches the amount indicated in question 2