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Your company keeps a minimum cash balance of $10 million, which earns an average annual interest rate of 3.5%. Your company WACC is 8.5%.
Your company keeps a minimum cash balance of $10 million, which earns an average annual interest rate of 3.5%. Your company WACC is 8.5%. What is the NPV of keeping this $10 minimum cash balance indefinitely? O $3.50 million O-$3.5 million O-$5.88 million O$4.12 million O-$4.12 million
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
