... incurred for keeping track of the cash, and the opportunity cost of cash, which is the cost of not investing the cash elsewhere. The transaction cost is the cost of acquiring more cash, either ... cash management, the EOQ model computes the amount of cash that minimizes the sum of the holding and transaction costs. Holding cost is the combination of the cost of administration, i.e. the ... both of which decrease the value of the firm. Cash management influences the value of the firm by limiting cash levels so that an optimal balance between the costs of holding cash and the costs...