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Grzegorz Michalski


Cash maintained in nonprofit organizations is not a source of any interest and although the close to cash assesses
together with credit lines available for enterprise are connected with resigning from realization of the part of incomes
or costs, firms decide to maintain some liquidity reserves. Not only this, resulting from transactional needs, but also
from precautional and speculative reasons. Investment in liquid reserves resulting from speculative demand for
money may be assessed by usage of capital budgeting methods like: Net Present Value (NPV) or Internal Rate of
Return (IRR) or as a call option.
In the research paper, each of these aspects of liquidity was taken into consideration and presented from nonprofit
perspective. Nonprofit liquidity value determination may often significantly contribute to the solution of working
capital management problems in these organizations.


Intrinsic Liquidity Value, Nonprofit Financial Management, Financial Liquidity, Liquidity, Financial Management

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