The Timberline fiRm Expects a Total Need of €12,500 Over

question 44

Multiple Choice

The Timberline firm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500, and cash is replenished when it hits zero.The fixed cost of selling
Securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per
Annum.There is a constant rate of cash disbursement and no cash receipts during the month.
What is the total opportunity cost for a month based on the firm's current practice?

• A)€5.00
• B)€18.98
• C)€27.92
• D)€60.00
• E)None of the above.

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Definitions:

Sensory Receptors

Sensory receptors are specialized cells located throughout the body that detect changes in the environment and send information to the brain, initiating sensation and perception.

Balance

The ability to maintain the body's center of mass over its base of support, a key component of physical stability and coordinated movement.

Tympanic Membrane

The tympanic membrane, commonly known as the eardrum, is a thin layer that separates the external ear from the middle ear and vibrates in response to sound waves.

Auditory Ossicle

Bone of the middle ear; includes the malleus, incus, and stapes.