Multiple Choice
A firm has annual operating outlays of $1,800,000 and a cash conversion cycle of 60 days. If thefirm currently pays 12 percent for negotiated financing and reduces its cash conversion cycle to 50days, the annual savings is __________.
A) $50,000
B) $6,000
C) $200,000
D) $216,000
Correct Answer:
Verified
Correct Answer:
Verified
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