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zezende

  • 2 years ago

Why cash doesn´t have a oportunity cost?

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  1. ArbabShah
    • 2 years ago
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    are u sure your question is correct and complete...because holding cash has an opportunity cost for example you have $10k in hand you can either keep them home or invest it in a bank for interest...if you decide to keep it with you the opportunity cost is the amount of interest foregone...

  2. zezende
    • 2 years ago
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    I´m asking because professor damodaran says when we are calculating working capital that one of motives for not include money is that it hasn´t an oportunity cost, and i don´t understand that question, because i agree with you holding money has the oportnuty cost of not investing it.

  3. ArbabShah
    • 2 years ago
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    i cant understand this statement either...as we do include cash while calculating working capital... :/

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