Question
Question 6 JSS Ltd has forecasted its total funds requirements for the coming year as shown in the table below: Month Total Funds Requirements January
Question 6 JSS Ltd has forecasted its total funds requirements for the coming year as shown in the table below: Month Total Funds Requirements January $500,000 February $300,000 March $550,000 April $350,000 May $350,000 June $550,000 July $350,000 August $350,000 September $450,000 October $500,000 November $700,000 December $750,000 Given that short-term funds cost 5% annually and that long-term funds cost 8% annually, calculate the total cost of each of the following strategies: (i) An aggressive funding strategy. (4 marks) (ii) A conservative funding strategy. (2 marks)
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