Find how much is the total cost the company will incur

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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.

Question 1. What is the optimal cash conversion size?

Question 2. How much is the total cost the Company will incur?

Reference no: EM132512872

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