... determining the investment in cash At the beginning of that chapter I explain the reasons and costs of holding cash in the company, and in continuance I present the basic models for quantifying the ... levels of cash, it increases its net working capital and the costs of holding cash, both of which decrease the value of the firm Cash management influences the value of the firm by limiting cash ... costs 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...