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What are the opportunity cost of holding cash

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Question 1: Little Bertha Corporation has an average daily cash balance of birr 200. Total cash needed for the year is birr 20,000. The interest rate is 5 percent, and replenishing the cash costs birr 8 each time. What are the opportunity cost of holding cash, the trading cost, and the total cost? What do you think of Little Bertha's strategy?

Reference no: EM132627239

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