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The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of
The Sandbox's Company has cash needs of P5 million per month. If Sandbox needs more cash, it can sell marketable securities, incurring a fee of P300 for each transaction. If Sandbox leaves its funds in marketable securities, it expects to earn approximately 0.50% per month on their investment. 2 points Using the Baumol model, how much would be the Sandbox's minimum total costs associated with cash infusion? Use a number, no decimal value no currency, no space, no commas.* your answer If Sandbox gets a cash infusion of P1 million each time it needs cash, what 2 points are the total costs per month associated its cash infusions? Use a number, no decimal value no currency, no space, no commas* Your answer Using the Baumol model, what level of cash infusion minimizes Sandbox's 3 points costs associated with cash? Use a number, no decimal value no currency, no space, no commas. * Your answer This is a required
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