Size of the firms optimal investment in current assets

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Reference no: EM131219659

How will the following affect the size of the firm’s optimal investment in current assets?

a. The interest rate rises from 6 percent to 8 percent.

b. A just-in-time inventory system is introduced that reduces the risk of inventory shortages.

c. Customers pressure the firm for a more lenient credit sales policy.

Reference no: EM131219659

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