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Miller-Orr Model
A financial management model used to determine the optimal level of cash balance a company should maintain, considering the costs of cash management and the variability of cash flows.
Opportunity Rate
The expected rate of return on the best alternative investment option.
Monthly Cash Flows
The net amount of cash being transferred into and out of a business during a particular month.
Miller-Orr Model
A financial model used to manage cash flows and cash reserves, predicting the optimal level of cash balance a company should maintain.
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