The cash-management process includes three elements: (1) controlling the cash-collection and cash-disbursement process, (2) managing the available cash balances, and (3) investing those balances in short-term instruments. Suppose you are a Fund Manager at one of the districts in Zambia and you have just received a K1000, 000 for salaries and operations for the entire year. a. Explain 5 various options you can use to manage cash balances. State the advantages and disadvantages of each of the options you identified. b. Identify 7 instruments in which you can invest the balance. State the advantages and disadvantages of each of the instruments you have identified.

The cash-management process includes three elements: (1) controlling the cash-collection and cash-disbursement process, (2) managing the available cash balances, and (3) investing those balances in short-term instruments. Suppose you are a Fund Manager at one of the districts in Zambia and you have just received a K1000, 000 for salaries and operations for the entire year. a. Explain 5 various options you can use to manage cash balances. State the advantages and disadvantages of each of the options you identified. b. Identify 7 instruments in which you can invest the balance. State the advantages and disadvantages of each of the instruments you have identified.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1cM

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