How does decision affect the working capital requirement

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Problem 1: Himalayan Engineering Works currently takes four days to convert the raw material and components to finished goods. The firm is considering in buying a set of new machines which will reduce the conversion time to 1.5 days. If the firm decides to buy the machines, how does this decision affect the working capital requirement?

(A).Working Capital requirement will increase

(B). Working Capital requirement will decrease

(C). No change in working capital requirement

(D).Change in conversion time has no relationship with working capital requirement.

Reference no: EM132558301

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