Identify the priority according to the distribution

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a) The objective of cash management is to keep the investment in cash as low as possible while still keeping the firm operating efficiently and effectively. Identify the motives for liquidity in the cash management.

b) Farid and Fatehah have a daughter, Falisha who want to further her study at college in 10 years from today. At the beginning of three years, they need to pay her school expenses of RM20,000. Compute the duration of their liability if they can borrow or lend at the market interest rate of 7 percent.

c)Once a firm has determined to be bankrupt, liquidation will take place. Identify the priority according to the distribution of the proceeds of the liquidation.

Reference no: EM132769745

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