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TREC firm needs $228000 a week to pay bills. The firm has established a lower cash balance limit of $72000. The applicable interest rate is

TREC firm needs $228000 a week to pay bills. The firm has established a lower cash balance limit of $72000. The applicable interest rate is 3.15 percent and the fixed cost of transferring funds is $29. Based on the BAT model, what is the optimal initial cash balance?

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