A firm has annual operating outlays of R3 200 000 and a cash conversion cycle of 60 days. If the firm currently pays 12% for negotiated financing and reduces its cash conversion cycle to 45 days, the annual savings is ... (assume a 365-day year). R 8767. R 15 781. R131 505. R216 000.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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QUESTION 18

A firm has annual operating outlays of R3 200 000 and a cash conversion cycle of 60 days. If the firm currently pays 12% for negotiated financing and reduces its cash conversion cycle to 45 days, the annual savings is ... (assume a 365-day year).

  1. R 8767.

  2. R 15 781.

  3. R131 505.

  4. R216 000.

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