Problem:
The Burger Stop spends €52,000 a week to pay bills and maintains a lower cash balance limit of €60,000. The standard deviation of the disbursements is €7,500. The applicable weekly interest rate is 0.04 percent and the fixed cost of transferring funds is €50.
Required:
Question: What is your optimal average cash balance based on the Miller-Orr model?
Note: Please show guided help with steps and answer.