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Adam's Aeronautics Company has been offered by its bank to manage its cash at a cost of $38,000 per year Under the proposed cash management,
Adam's Aeronautics Company has been offered by its bank to manage its cash at a cost of $38,000 per year Under the proposed cash management, the firm can reduce the cash required on hand by $190,000. Since the bank is also doing a lot of record keeping the firm's administrative cost would decrease by $3.000 per month What recommendation would you give the firm with respect to the proposed cash management assuming the firm's opportunity cost is 10 percent
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