Your firm has a net cash inflow for the quarter of $$40.$ The beginning cash balance is $$120.$ Company policy is to maintain a

minimum cash balance of $$100.$ The firm borrows only the amount that is necessary to maintain that balance. If it has any surplus

funds, it invests in money market instruments. The firm to have a zero cumulative surplus.

Multiple Choice

Needs to borrow $$20$

Needs to borrow $$60$

Can invest $$80$

Can invest $$60$

Needs to borrow $$140$