Halliday Inc. receives a $2 million payment once a year. Of thisamount, $600,000 is needed for cash payments made during the nextyear. Each time Halliday deposits money in its account, a charge of$2.00 is assessed to cover clerical costs. If Halliday can holdmarketable securities that yield 5 percent, and then convert thesesecurities to cash at a cost of only the $2 deposit charge, what isthe total cost for one year of holding the minimum cost cashbalance according to the Baumol model?