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A services firm does all its business in cash only. The firm projects a cash balance of $3,000 in its account after all taxes and

A services firm does all its business in cash only. The firm projects a cash balance of $3,000 in its account after all taxes and costs are paid. The owners plan to invest $8,000 and pay a dividend of $1000. How much net new financing is needed?

A.

$4,000

B.

$5,000

C.

$6,000

D.

$7,000

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