Give the Correct Answers and Complete Solution. Please TYPE the answers and solutions here. DO NOT send an image, screenshot, or handwritten. ALSO, P166,666.67 is the amount that has been scratched out by a black pen.

Problem 2. Lexberville Company expects to make even monthly cash payments of 1 166 466 67 during the year. The average return on money market placements is 8% p.a. and payment for cash transfer is expected to be P242 per transaction. Requirements: 5. Transaction cost at the optimum cash balance. (round to nearest whole number) 6. Transaction cost at P40,000 cash balance. 7. Opportunity cost at P500,000 cash balance