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Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected that cash will be paid uniformly. The annual interest rate is 24 percent. The transaction cost of each borrowing or withdrawal is P30. (a) What is the optimal cash balance? (b) What is the average cash balance? CHOOSE THE CORRECT ANSWER FOR A AND B (A) P1,432.05 and (B) P566.03 (A) P2,121.32 and (B) P8060.66 (A) P1,121.32 and (B) P1060.66 (A) P2,121.32 and (B) P1060.66 (A) P1,732.05 and (B) P866.03

Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected that cash will be paid uniformly. The annual interest rate is 24 percent. The transaction cost of each borrowing or withdrawal is P30. (a) What is the optimal cash balance? (b) What is the average cash balance? CHOOSE THE CORRECT ANSWER FOR A AND B (A) P1,432.05 and (B) P566.03 (A) P2,121.32 and (B) P8060.66 (A) P1,121.32 and (B) P1060.66 (A) P2,121.32 and (B) P1060.66 (A) P1,732.05 and (B) P866.03

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Green Corporation anticipates a cash requirement of P1,500 over a 1- month period. It is expected that cash will be paid uniformly. The annual interest rate is 24 percent. The transaction cost of each borrowing or withdrawal is P30. (a) What is the optimal cash balance? (b) What is the average cash balance? 

CHOOSE THE CORRECT ANSWER FOR A AND B
(A) P1,432.05 and (B) P566.03
(A) P2,121.32 and (B) P8060.66
(A) P1,121.32 and (B) P1060.66
(A) P2,121.32 and (B) P1060.66
(A) P1,732.05 and (B) P866.03

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