The annual cash requirement of A Ltd. is ₹ 10,00,000. The company has marketable securities in lot size of ₹ 1,00,000. The cost of conversion of marketable securities per lot is ₹ 1,000. The company can earn a 5% annual yield on its securities. Calculate the total cost.

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The annual cash requirement of A Ltd. is ₹ 10,00,000. The company has marketable securities in lot size of ₹ 1,00,000. The cost of conversion of marketable securities per lot is ₹ 1,000. The company can earn a 5% annual yield on its securities. Calculate the total cost.






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