The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. 1. If Sandbox gets a cash infusion of P1 million each time it needs cash, how much would be the average cash balance associated with its cash investment? Use a number, no decimal value no currency, no space, no commas * 2. Using the Baumol model, how much would be the Sandbox’s minimum total costs associated with cash infusion? Use a number, no decimal value no currency, no space, no commas. 3. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the holding costs associated with its cash investment? Use a number, no decimal value no currency, no space, no comma
PROBLEM
The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment.
1. If Sandbox gets a cash infusion of P1 million each time it needs cash, how much would be the average cash balance associated with its cash investment? Use a number, no decimal value no currency, no space, no commas *
2. Using the Baumol model, how much would be the Sandbox’s minimum total costs associated with cash infusion? Use a number, no decimal value no currency, no space, no commas.
3. If Sandbox gets a cash infusion of P1 million each time it needs cash, what are the holding costs associated with its cash investment? Use a number, no decimal value no currency, no space, no commas *
PLEASE ANSWER ALL QUESTIONS. THANKS
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