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Business, 12.04.2021 19:00 marziel24

Agatha Concrete Company has been offered by its bank to manage its cash at a cost of $25,000 per year. Under the proposed cash management, the firm can reduce the cash required on hand by $300,000. Since the bank is also doing a lot of record keeping, the firm's administrative cost would decrease by $1,000 per month. What recommendation would you give the firm with respect to the proposed cash management assuming the firm's opportunity cost is 6 percent

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