Optimal Cash Transfer. Barenbaum Industries projects that cash outlays of $5.4 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities form its portfolio. The firms marketable securities are invested to earn 6%, and the cost per transaction of converting securities to cash is $15. (5 pts)

What would the total cost be if the company maintained an average cash balance of $40,000 or of $0 (it deposits funds daily to meet cash requirements, using 360 days)?