Your firm has a net cash inflow for the quarter of £60.The beginning cash balance is £35.Company policy is to maintain a minimum cash balance of £15 and borrow only the amount that is necessary
To maintain that balance.How much does your firm need to borrow or how much can it repay on its
Loans to have a zero cumulative surplus?
A) borrow £40
B) borrow £10
C) repay £10
D) repay £40
E) repay £80
Correct Answer:
Verified
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