Suppose that the interest rate on Treasury bills is 6%, and every sale of bills costs P60.  You pay out cash at a rate of P800,000 a year.  According to Baumol's model of cash balances, what is Q?     P17,376   P20,000   P50,000   P40,000   P10,000

Q: Your bank pays 5% interest annually. You have $4,500 invested in the bank. How long will it take for…

A: Future Value = Present Value * (1+rate)^n Where rate = 5% n = years Future value = 4500*2 =9000

Q: Bhupatbhai

A: Future Value = fv = $230,000Present Value = pv = $41,000Interest Rate = r = 4.5%

Q: Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5…

A: Reserve ratio is the percentage of bank's deposits that must be kept in cash  as a reserve to meet…

Q: vvk.1

A: The objective of this question is to find the future equivalent of a geometric series of cash flows…

Q: B. Calculate the Annual worth of the following cash flow at interest rate equals 7%? 0 25000 1 2…

A: Step 1 The annual worth is the sum of all the advantages and expenses over the course of a year.

Q: Can you show all calculations please, answer is 4.79

A: The Discounted Payback Period (or DPP) is X + Y/ZIn this calculation:X is the last time period where…

Q: What is the maximum amount of money created from a $3 million deposit in the banking system if the…

A: Maximum amount of money created will be Maximum amount of money = Total Deposits * 1 / Required…

Q: Consider a geometric series of cash flows that begins at time 5 with a cash flow of $5,000.  Cash…

A: Cash flow at time 5 = $ 5000Annual growth in cash flow =-7%Number of cash flows = 9Future value…

Q: What is the net future value of the following cash flow stream? Nothing today, + $100 for each of…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: average cash balance (ro

A: Average cash balance refers to the amount determined by an officer of a company dividing by the…

Q: A machine has the following cash flows: CF0 = -361,000; CF1 = -90,000; CF2 = -56,000. What is the…

A: 1. Present value of annuity PV = A * 1-(1+r)-nr where, PV = Total present value of cash flows  A =…

Q: Penco Supply spends £428,000 a week to pay bills and maintains a lower cash balance limit of…

A:

Q: Consider the following cash flow diagram. What value of C makes the inflow series equivalent to the…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: The following cash flows are in actual dollars: Cash Flow (in Actual $) $25,000 4 35,000 45,000 7…

A: A constant dollar is the adjusted value which is used to compare the value of one period with that…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.