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Q13. Johnson & Sons Company Ltd estimated cash payments of Rs 60 Lakhs for a one-month period. The average fixed cost for securing capital from

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Q13. Johnson & Sons Company Ltd estimated cash payments of Rs 60 Lakhs for a one-month period. The average fixed cost for securing capital from the market is Rs 150 and the interest rate on marketable securities is 15 percent per annum or 1.25 percent for the one-month period. What is the economic order size of cash? ( 15 MARKS)

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