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Travel Inn Express spends $149,000 a week to pay bills and maintains a lower cash balance limit of $175,000. The standard deviation of the disbursements
Travel Inn Express spends $149,000 a week to pay bills and maintains a lower cash balance limit of $175,000. The standard deviation of the disbursements is $14,400. The applicable weekly interest rate is .039 percent and the fixed cost of transferring funds is $18. What is the inn's cash balance target based on the Miller-Orr model? 1.$228,492.97
2.$181,359.09
3.$194,289.96
4.$156,359.70
5.$205,118.80
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