Ask your own question, for FREE!
Finance 24 Online
OpenStudy (anonymous):

Why cash doesn´t have a oportunity cost?

OpenStudy (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...

OpenStudy (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.

OpenStudy (anonymous):

i cant understand this statement either...as we do include cash while calculating working capital... :/

Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!
Can't find your answer? Make a FREE account and ask your own questions, OR help others and earn volunteer hours!

Join our real-time social learning platform and learn together with your friends!