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Donaldson,Inc. spends $1116,000 a week to pay billsand maintains a lower cash balance of limit of $35000.The standard deviation of disbursements is $9000. The applicable

Donaldson,Inc. spends $1116,000 a week to pay billsand maintains a lower cash balance of limit of $35000.The standard deviation of disbursements is $9000. The applicable weekly interest rate is 0.05% and the fixed cost of transferring funds is $12.What is your optimal average cash balance based on the Miller-Orr model?

a.48,333.33

b.50119.05

c.42623.33

d.46334.09

e. 47108.16

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