Your firm has a net cash inflow for the quarter of $75.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 $95
E) Repay $125
Correct Answer:
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