On an average day, a company writes 59 checks worth a total of $6,450 that clear in 3 days. The company also collects 81 checks worth a total of $8,990 that clear in 2.75 days. What is the company's average disbursement float?

Multiple Choice

• $24,723

• $6,450

• $8,990

• $19,350

• $15,733

Travel Inn Express spends $89,700 a week to pay bills and maintains a lower cash balance limit of $27,000. The standard deviation of the disbursements is $11,400. The applicable weekly interest rate is .041 percent and the fixed cost of transferring funds is $48. What is the optimal upper cash limit based on the MillerOrr model?

Multiple Choice

• $85,118

• $51,359

• $94,540

• $49,513

• $106,359

Lake Side spends $22,406 a week to pay bills and maintains a lower cash balance limit of $15,000. The standard deviation of disbursements is $1,300. The applicable interest rate is 3.46 percent and the fixed cost of transferring funds is $38. What is the opportunity cost of holding cash based on the BAT model?

Multiple Choice

• $791

• $875

• $804

• $567

• $728