1. Hyperbole Corporation estimates its total annual cash disbursements of $3,251,250 which are to be paid uniformly. Hyperbole 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. What is the opportunity cost of keeping cash in the bank account?

	$3,825.00
	$4,190.00
	$1,912.50
	$188.55

2.

Simile Inc. has a total annual cash requirement of $9,075,000 which are to be paid uniformly. Simile has the opportunity to invest the money at 24% per annum. The company spends, on the average, $40 for every cash conversion to marketable securities. What is the optimal cash conversion size?

	$60,000
	$55,000
	$45,000
	$72,500