QUESTION $2(20$ MARKS$)$ Based on the information provided below, answer the following questions. INFORMATION Pratt $\backslash$& Gumbos $($Pty$)$ Ltd $($P$\backslash$&G$),$ a fast$-$growing family$-$owned trading enterprise, aims to enhance its cash flow management, which is a critical yet volatile aspect of its daily operations. Over the past few years, as the volume of cash transactions has increased, P$\backslash$&G$\text{'}$s management has focused on minimising the costs associated with holding and transferring cash. For the recently concluded financial year, P$\backslash$&G required a monthly cash disbursement of R$2$ million at the beginning of each month, sourced from the sale of investments held by the company. These investments generated an average return of $\backslash (8\mathrm{.}5\backslash \%\backslash )$ per annum during the past year, with each transaction to sell investments incurring a fixed fee of R$240.$ Any excess cash was placed in a short$-$notice savings account, earning an interest rate of $\backslash (3\mathrm{.}5\backslash \%\backslash )$ per annum. However, the existing cash management strategy was found to be inefficient in adjusting cash withdrawals and lacked the flexibility needed to respond to volatile cash flows. As a result, for the upcoming financial year, $\backslash (\backslash$mathrm$\{$P$\}\backslash$& $\backslash$mathrm$\{$G$\}\backslash )$ has opted for a more adaptive approach. This strategy involves maintaining a minimum cash balance of R$500,000,$ along with predefined upper and lower cash balance limits$.$ For the forthcoming year, the business anticipates a variance in daily cash flows $(\backslash (\backslash$mathrm$\{$s$\}^\{2\}\backslash ))$ of R$2,500,000,000,$ with a daily interest rate of $\backslash (0\mathrm{.}025\backslash \%\backslash )$ on its investments. Each transaction to sell investments will incur a fixed fee of R$250$ in the forthcoming year. REQUIRED: $2\mathrm{.}1.$ Based on the information provided above, calculate the total annual cost of cash management for $(3$ Marks$)$ P$\backslash$&G for the previous financial year. $2\mathrm{.}2.$Using the Baumol Model, calculate the optimal cash transfer size $($Q$)$ and the total annual cost of managing cash for P$\backslash$&G for the previous financial year. Please show all calculations and round the answers to two decimal places. $2\mathrm{.}3.$Using the Miller$-$Orr Model, calculate the spread between the upper and lower limits $($Z$),$ the upper limit $\backslash ((\backslash$mathrm$\{$U$\})\backslash ),$ and the return point $\backslash ((\backslash$mathrm$\{$R$\})\backslash )$ for the cash balance for $\backslash (\backslash$mathrm$\{$P$\}\backslash$& $\backslash$mathrm$\{$G$\}\backslash )$ in the forthcoming year. Round off answers to the nearest Rand. $2\mathrm{.}4.$Specify two $(2)$ advantages and two $(2)$ disadvantages of the Baumol and Miller$-$Orr models of cash management each.