A. Hardrock Hardware PLC estimate a cash of $2500000 over the next five months. This amount is available to the firm in the form of marketable securities. It can earn 10% annual yield on its marketable securities. Conversion of marketable securities into cash entails a fixed cost of $750 per transaction. Determine: i.Optimumcashbalanceii.Averagecashholdingiii.Numberoftransactionsiv.Averagenumberofdayspertransaction(assume30dayspermonth)v.Totalcostofholdingcashbalancevi.Perdayusageofcash(3marks)(Imark)(Imark)(Imark)(3marks)(Imark) B. Wright Industries Limited traditionally follows a highly aggressive working capital policy with no long-term borrowings. Below are key details recently compiled: The firm is also proposing to offer a 4/10, net /30 discount policy to reduce accounts receivables. Wrights anticipites 30% of its customers will take advantage of the discount. As a result of this discount policy, the collection period will be reduced to 11/2 months. The company also provides the following data: B. Wright Industries Limited traditionally follows a highly aggressive working capital policy with no long-term borrowings. Below are key details recently compiled: The firm is also proposing to offer a 4/10, net /30 discount policy to reduce accounts receivables. Wrights anticipates 30% of its customers will take advantage of the discount. As a result of this discount policy, the collection period will be reduced to 11/2 months. The company also provides the following data: Determine: i. the firm's working capital cycle, that is, cash conversion cycle. (4 marks) ii. Whether the firm should offer the new discount policy to customers. (6 marks)