What is minimum increasein profit that make proposed change

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Problem 1: The financial manager of SawerLimited is proposing a radical change in working capital management which willresult in a decrease in accounts receivable of $1.1 million, an increase ininventories $2.9 million and an increase in accounts payable of $1.2 million. If the required return on investments in working capital is 10%, what is the minimum increasein profit that would make the proposed changes acceptable?

Reference no: EM132961097

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