Bukids Café is a solely-owned coffee shop with an average cash payments of
P5,000,000 annually. As the need arises, the owner, Jasper, resorts to borrowing cash
and pays an average fee of P80. The owner is planning to apply for a one-time bigtime loan of P5,000,000 at the beginning of the year to avoid paying the fees every
time he borrows from lending institutions. However, he is also worried that he
might be hoarding too much cash for a long time and would missed earning an 8%
return on marketable securities investment. Jasper is asking for your opinion being a
Business Administration student. What advice can you give him? Provide numerical
data (computations) to support your point. You may use the space provided below.
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sorry didn't know the answer
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