Question: Kindly help me about this case. ABC Corporation needs 4 0 0 , 0 0 0 pesos cash per year to support its annual expenditures

Kindly help me about this case. ABC Corporation needs 400,000 pesos cash per year to support its annual expenditures and operating expenses. If ABC has excess cash, it is invested in a money market fund that earns 5% interest per annum. Converting securities into cash would cost ABC 400 pesos per transaction. Question is 1. What is the optimal cash balance of ABC Corporation 2.How many times in a year will ABC convert its investments in money market fund into cash to satisfy the annual cash requirement of 400,000 pesos? 3. How much is the total conversion costs of ABC Corporation and 4. How much is the total opportunity cost of not investing the excess cash in the money market fund?

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