Multiple Choice
A firm has a cash conversion cycle of 60 days. Annual outlays are $12 million and the cost of financing is 12 percent. If the firm reduces its average age of inventory by 10 days, the annual savings is ________. (Assume a 365-day year.)
A) $10,400
B) $14,000
C) $28,800
D) $39,452
Correct Answer:
Verified
Correct Answer:
Verified
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