Ithaca Iron Has Annual Operating Outlays of $1,800,000 and a Cash

Multiple Choice

Ithaca Iron has annual operating outlays of $1,800,000 and a cash conversion cycle of 60 days.If the firm currently pays 12 percent for negotiated financing and reduces its cash conversion cycle to 50 days,the annual savings is

A) $60,000.
B) $10,000.
C) $6,000.
D) $16,000.
E) none of above are correct