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Explain break-even pricing.
Optimal Cash Position
The Optimal Cash Position is the ideal amount of cash that a company aims to hold for covering immediate transactional needs while minimizing holding costs, ensuring liquidity without forgoing potential higher returns from other investments.
Cash Surpluses
Excess funds that a business possesses after it has paid all expenses and liabilities, which can be used for investment, paying down debt, or other purposes.
Disbursement Float
The interval when funds are disbursed from a payer's account until the payee's bank credits the amount.
Ledger Float
The time difference between when a check is written and when it is actually deducted from the payer's account.
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