Crowell Ltd. is considering using the Miller-Orr model to manage its cash flows. The minimum cash balance would be KES 4,000,000. Other information is as follows:

• Interest rate per annum = 14.4%
• Transaction cost per sale = KES 25,000
• Standard deviation of daily cash flows = KES 50,000
• A year has 360 days.

Required:

Calculate the Miller-Orr model upper limit and return point, and explain how these would be used to manage the cash balances of Crowell Ltd.