17 Simile Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly. Simile has the opportunity to invest the money at 24% per annum. The company spends, on the average, P40 for every cash conversion to marketable securities. What is the optimal cash conversion size? a. P60,000 c. P45,000 d. P72,500 b. P55,000 18 Hyperbole Corporation estimates its total annual cash disbursements of P3,251,250 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? a. P3,825.00 c. P4,190.00 b. P1,912.50 d. P 188.55 19. An invoice of a P100,000 purchase has credit terms of 1/10, n/40. A bank loan for 8 percent can be arranged at any time. When should the customer pay the invoice? a. Pay on the 1st c. Pay on the 40th b. Pay on the 10th d. Pay on the 60th 20. The Peninsula Commercial Bank and Island Corporation agreed to the following loan proposal: a. Stated interest rate of 10% on a one-year discounted loan; and b. 15% of the loan as compensating balance on zero-interest current account to be maintained by Island Corporation with Peninsula Commercial Bank. The loan requires a net proceeds of P1.5 million. What is the principal amount of loan applied for as part of the loan agreement? a. P1,666,667 c. P1,764,706 b. P2,000,000 d. P1,125,000