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Question 2 (a) The bank of Finnest Company has offered $40,000 per year to manage Finnest short- term funds. By implementing the proposed cash management

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Question 2 (a) The bank of Finnest Company has offered $40,000 per year to manage Finnest short- term funds. By implementing the proposed cash management strategy, the company can save $180,000. Since the bank also handles a lot of record keeping, the company's administrative costs would be reduced by $2,000 per month. Page 1 of 3 Mary . Aug. 2021 Final Examination 84205 Financial Management _ Required: What advice would you give the company about the proposed cash management if the company's opportunity cost is 12%? (10 marks)

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