It Would Seem That Float Management for Most Firms Would

question 269

Essay

It would seem that float management for most firms would provide only a small NPV, that is, only a small benefit to the firm. Given that there are other positive NPV projects out there, why should a firm spend a lot of time chasing after a few pennies?

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Definitions:

Confidence Interval

A range of values derived from sample data that estimates the range within which a population parameter is believed to lie with a certain level of confidence.

Pooled Estimator

A method used to estimate a common mean or variance from two or more samples, especially in t-tests involving independent samples with assumed equal but unknown variances.

Confidence Interval

A type of estimate computed from the statistics of observed data, which might contain the true value of the unknown population parameter.

Two-Wheeled Bicycle

A vehicle consisting of two wheels held in a frame one behind the other, propelled by pedals and steered with handlebars attached to the front wheel.