Your fiRm Has a Net Cash Inflow for the Quarter

question 53

Multiple Choice

Your firm has a net cash inflow for the quarter of £60.The beginning cash balance is £35.Company policy is to maintain a minimum cash balance of £15 and borrow only the amount that is necessary
To maintain that balance.How much does your firm need to borrow or how much can it repay on its
Loans to have a zero cumulative surplus?

• A)borrow £40
• B)borrow £10
• C)repay £10
• D)repay £40
• E)repay £80

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Definitions:

Domain

The set of all possible input values for a function.

Rational Function

A function represented by the ratio of two polynomials.

Rational Expression

A ratio of two polynomials.

Simplify

The process of reducing an expression or equation to its simplest form, often by combining like terms or applying mathematical operations.