One way of handling uncertain cash flows is to set an upper and lower limit for cash balances and a return point to which the cash balance is brought to when the upper or lower limit is reached.

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This is a commonly used technique in financial management and is known as cash flow management or cash flow forecasting. By setting upper and lower limits, the organization can maintain sufficient cash reserves to cover expenses while minimizing the risk of holding excess cash. The return point is the level at which cash is invested or used to pay down debt once the upper or lower limit is reached. This approach can help organizations maintain financial stability and avoid cash flow crises.

One Way of Handling Uncertain Cash Flows Is to Set