Carbide Corporation is examining its operating cash management. One of the options the firm is considering is a zero-balance account (ZBA). The firm's bank is offering a ZBA with monthly charges of $1,500, and the bank estimates that the firm can expect to earn 8% on its
Determine the minimum average cash balance that would make this ZBA a benefit to the firm. Assume a 365-day year.© BrainMass Inc. brainmass.com June 4, 2020, 2:27 am ad1c9bdddf
ZBA would benefit only if savings in interest offsets the monthly ...
This solution provides assistance determining the minimum average cash balance that would make this ZBA a benefit to the firm.