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Q. Explain Inventory approach to cash management?
This method analysis cash in the same way as engine inventory such that EOQ models may be employed. In such conditions cash is viewed as an asset with costs associated with it that should be minimised so as to determine what level of cash balances should be held. Therefore decreases or increases in cash balances can be determined according to planned growth the time value of money and the costs of obtaining new funds.
The process of securitization can best be understood by taking the following example. Assume that there exists an NBFC which has hire purchase as its major busine
limitations of using a periodic inventory system
If invested 2500 in a bank that pays 1% annually. How long will it take for the funds to double?
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