Reference no: EM132526038
Question 1: AA Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly. AA has the opportunity to invest the money at 24% per annum. The Company spends, on the average, P40 for every cash conversion on marketable securities.
1. What is the optimal cash conversion size?
2. How much is the total cost the Company will incur?
Question 2: BB Co. has received proposals from several banks to establish a lockbox system to speed up receipts. BB receives an average of 700 checks per day averaging P1,800 each, and its cost of short term funds is 7% per year. Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for BB?
A. A P0.50 fee per check?
B. A fee of 0.03% of the amount collected.
C. A flat fee of P125,000 per year
D. A compensating balance of P1,750,000
Question 3: CC Corp estimates its total annual cash disbursements of P3,251,250 which are to be paid uniformly. CC has the opportunity to invest the money at 9% per annum. The Company spends, on the average, P25 for every cash conversion to marketable securities and vice versa.
1. What is the optimal cash conversion size?
2. How much is the total cost the Company will incur?
|
Provide the entries on january
: Provide the entries on January 1, 20x5 and December 31, 20x5. ABC Co. acquired a machine for 1,000,000 on January 1, 20x1
|
|
Identify and describe the four stages of learning
: Identify and describe the four stages of learning: Which stage do you believe is the most difficult for the teacher to instruct? Which stage do you believe.
|
|
Control the spread of cryptographic technologies
: For years the U.S. and other countries have tried to control the spread of cryptographic technologies, with little success.
|
|
Why did so many people go along with what was happening
: Why did so many people go along with what was happening? Does the Social Influence video in this weeks lecture notes explain any of this?
|
|
Determine how much is the total cost the company will incur
: Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for BB?
|
|
Impact of renewable energy in the region of australia
: Describe the background to the study and explain why it is important and/or of interest and to whom and Briefly describe the structure of the remainder
|
|
Sacrificing ethical standards
: Who are the leaders of the organization? What would you change about the organization to make it better, without sacrificing ethical standards?
|
|
Find which efficiency ratios can use to calculate and decide
: Which two Efficiency ratios can we use to calculate and decide in which bank we can invest our money ? And why are we choosing those 2 ratios?
|
|
Search a company with a set of current financial statements
: Search a company (example as Google, facebook, Macy's and others) with a set of current financial statements and apply the ratios
|