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National Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. National has the opportunity to invest the money at 21% per annum. The company spends, on the average, P30 for every cash conversion to marketable securities. What is the optimal cash conversion size? * Format: 11,111.11

National Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. National has the opportunity to invest the money at 21% per annum. The company spends, on the average, P30 for every cash conversion to marketable securities. What is the optimal cash conversion size? * Format: 11,111.11

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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National Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. National has the opportunity to invest the money at 21% per annum. The company spends, on the average, P30 for every cash conversion to marketable securities. What is the optimal cash conversion size? * Format: 11,111.11
Transcribed Image Text:National Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. National has the opportunity to invest the money at 21% per annum. The company spends, on the average, P30 for every cash conversion to marketable securities. What is the optimal cash conversion size? * Format: 11,111.11
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