The net annual benefit (NAB) of a permanent working capital decision is: A. The pre-tax cash flows per year associated with permanent working capital B. The cost of capital times original investment in permanent working capital C. The amount of annual benefits from the decision in excess of the amount required to cover the firm's cost of capital D. The added sales less costs generated from a permanent working capital, excluding the cost of capital Firms hold cash to cover unexpected increases in their spending needs. This is referred to as the for holding cash O A transactions motive B. precautionary motive C. speculative motive O D. compensating balance motive