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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 4EB: Assume a company is going to make an investment in a machine of $825,000 and the following are the...

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