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d uniformly. Babylon has the opportu ends, on the average, P45 for every ca

d uniformly. Babylon has the opportu ends, on the average, P45 for every ca

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 5MCQ: An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second...
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What is the optimal conversion size for cash?
 
a. 41,335
b. 58,457
c. 60,000
d. 82,670
Problem 6. Babylon Company has a total annual cash requirement of P6,075,000 which are to be paid uniformly. Babylon has the opportunity to invest the money at 8% per annum. The company spends, on the average, P45 for every cash conversion to cash and vice versa.
Transcribed Image Text:Problem 6. Babylon Company has a total annual cash requirement of P6,075,000 which are to be paid uniformly. Babylon has the opportunity to invest the money at 8% per annum. The company spends, on the average, P45 for every cash conversion to cash and vice versa.
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