Residual Value Is Also Known as All of the Following

question 77

Multiple Choice

Residual value is also known as all of the following except

• A) scrap value
• B) trade-in value
• C) salvage value
• D) net book value

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Definitions:

Optimal Cash Balance

The ideal amount of cash a company should hold to minimize both holding costs and transaction costs.

Float Cost Impact

The effect of delayed checks or securities settlements on the use of funds, which can affect a company's cash flow.

Target Cash Balance

The optimal level of cash a company aims to maintain to manage daily operations and accommodate unexpected expenses or investment opportunities.

Cash Flow Uncertainty

The unpredictability regarding the amounts and timing of cash flows into or out of a business.