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Cash Management: - Cash management comprises maintaining optimum cash balance and efficient collection and disbursement of cash.
Methods or else Devices of Cash Management: - The subsequent are the methods of cash management:
(1) Cash Budget
(2) Cash Flow Statements
(3) Cash Flow Ratios
(4) Cash Management Model or Baumol Model.
Profitability Index (PI) : It is a ratio of the present value of the total cash benefits to the present value of the net cash outlay. The higher the PI, the higher the return.
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