Determine what the annual savings is

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Problem 1: Twelve-twelve has a cash conversion cycle of 60 days. Annual outlays are P11.5 million and the cost of negotiated financing is 9.5 percent, 360 days a year. If the firm reduces its average age of inventory by 10 days, increases its age of collection by 5 days and payment period by 7 days, the annual savings is

Reference no: EM132809039

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