anonymous
  • anonymous
Why cash doesn´t have a oportunity cost?
Finance
  • Stacey Warren - Expert brainly.com
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SOLVED
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schrodinger
  • schrodinger
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anonymous
  • anonymous
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...
anonymous
  • anonymous
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.
anonymous
  • anonymous
i cant understand this statement either...as we do include cash while calculating working capital... :/

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