MSU's assistant treasurer wants to use the Baumol Model to determine the optimal cash transfer amount. The firm develops the following parameters: an annual opportunity cost is 10%, a fixed cost per securities transaction is $10, and total annual cash needs for the year is $200,000. What is the optimal cash transfer amount?

	a.	$6,324.55
	b.	$7,419.46
	c.	$5,325.27
	d.	$4,472.14

What is the total annual cost (transaction and carrying costs) of the cash position?

	a.	$316.23
	b.	$3,162.29
	c.	$6,324.56
	d.	$632.46

Assume that the treasurer wants to use the Miller-Orr Model to determine the optimal transfer amount and has developed the following additional parameters: lower control limit = $40,000, upper control limit= $60,000, and variance of daily cash flows = $300,000. What should the cash return level be?

	a.	$282.31
	b.	$42,017.55
	c.	$2,017.55
	d.	$39,717.69

What is the optimal value of upper control limit?

	a.	$33,947.34
	b.	$46,052.66
	c.	$40,846.93
	d.	$39,153.07

What is the average cash balance?

	a.	$37,309.93
	b.	$39,623.72
	c.	$42,690.07
	d.	$40,376.28