49 Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to3,000. Bank of Wildcats charges Bulldogs P15 for every transaction with the bank. The bankgrants 5% annual interest. Bulldogs is contemplation if it will still need to have the cash buffer.How much is the annual savings in annual holding cost of cash for Bulldogs if it will not have acash buffer? *

Company maintain cash with them so that there is sufficient liquidity and if any opportunity arise…

Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amountir 3,000. Bank of Wildcats charges Bulldogs P15 for every transaction with the bank. The b grants 5% annual interest. Bulldogs is contemplation if it will still need to have the cash How much is the annual savings in annual holding cost of cash for Bulldogs if it will not cash buffer?

Bulldogs Inc. maintains a cash buffer for unexpected cash outlays for the year amountir 3,000. Bank of Wildcats charges Bulldogs P15 for every transaction with the bank. The b grants 5% annual interest. Bulldogs is contemplation if it will still need to have the cash How much is the annual savings in annual holding cost of cash for Bulldogs if it will not cash buffer?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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