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1. What are some of the key cost trade-offs that the financial manager must focus on when attempting to manage short-term accounts in a manner that minimizes cash? Prepare a graph describing the general nature of these cost trade-offs and the optimal level of total cost.

2. Assume that the financial manager is considering stretching the firm's accounts payable by paying its vendors at a later date. What key cost tradeoffs would be involved when making this stretching decision? How would you quantitatively model this decision?

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Category:- Basic Finance
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