a. The optimum cash balance is? b. The average cash balance is? c. the number of conversion made during the year is? d. The total cash cost is?
a. The optimum cash balance is? b. The average cash balance is? c. the number of conversion made during the year is? d. The total cash cost is?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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The
period. He asked the help of the accountant and the latter provided a
the computations, the company would be incurring cash expenses of P6,612,500 per month. The financial manager
has estimated a cost of P40 per transaction in case non-cash asset is converted to cash. The firm’s opportunity cost
ratio is 12%.
a. The optimum cash balance is?
b. The average cash balance is?
c. the number of conversion made during the year is?
d. The total cash cost is?
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