If a Firm Has Achieved Its Target Cash Balance the Net

question 34

Multiple Choice

If a firm has achieved its target cash balance the net present value is:

• A) positive because the cash balance is positive.
• B) zero because increasing the cash balance increases the interest cost.
• C) negative because the cash balance has a financing cost.
• D) positive because decreasing the cash decreases the cost of illiquidity.

Understand the transition from agrarian to industrial economies in America during the 19th century.

Identify the geographic and demographic shifts in America from 1815 to 1860.

Recognize the impact of technological advances on American manufacturing and transportation.

Analyze the changing nature of labor and working conditions during the industrial transformation.

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Definitions:

Opportunity Costs

The loss of potential gain from other alternatives when one alternative is chosen.

Profit-maximizing

A firm's strategy or approach to achieve the highest possible profit from its operations, focusing on optimizing production and sales.

Accounting Costs

The recorded expenses in the financial statements of a company, including both fixed and variable costs incurred during business operations.

Sunk Costs

Costs that have already been incurred and cannot be recovered.