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Morr Co. has a total annual cash requirement of P9,075,000 which are to be paid uniformly.Morr has the opportunity to invest the money at 24% per annum. The company spends, on the average, P40 for every cash conversion to marketable securities. What is the optimum average cash balance?
A. P60,000 C. P43,000
B. P55,000 D. P27,500
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