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

	a.	$6,928
	b.	$173
	c.	$3,464
	d.	$346
	e.	$748