Problem 2. Lexberville Company expects to make even monthly cash payments of P166,666.67 during the year. The average return on money market placements is 8% p.a. and payment for cash transfer is...

Extracted text: Problem 2. Lexberville Company expects to make even monthly cash payments of P166,666.67 during the year. The average return on money market placements is 8% p.a. and payment for cash transfer is expected to be P242 per transaction. Requirements: 5. Transaction cost at the optimum cash balance. (round to nearest whole number) 6. Transaction cost at P40,000 cash balance. 7. Opportunity cost at P500,000 cash balance.