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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.
We need to have done some exploration work on all of the major projects for inclusion in our prospectus, but of our $4m we need at least $1m in the bank to pay for all the listing
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