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Ithaca Iron Has Annual Operating Outlays of $13,800,000 and a Cash

Question 73

Multiple Choice

Ithaca Iron has annual operating outlays of $13,800,000 and a cash conversion cycle of 60 50 days.If the firm currently pays 12 10 percent for negotiated financing and reduces its cash conversion cycle to 50 45 days, the annual savings is closest to


A) $560,000.
B) $10,000.
C) $26,000.
D) $16,000.
E) none of above are correct

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