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MB Corporation projects that total cash outlays of $3,400,000 will occur uniformly throughout the coming year. MB plans to meet its cash requirements by periodically

MB Corporation projects that total cash outlays of $3,400,000 will occur uniformly throughout the coming year. MB plans to meet its cash requirements by periodically borrowing from the bank at an interest rate of 7.89%. The bank charges $29.00 to process each loan. Use the BAT model to estimate the average cash balance for MB.

a. $540,000

b. $270,000

c. $25,000

d. $50,000

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