What is the firm average investment in receivables

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Question - Inventory conversion period is 60 daysPayables deferral period is 30 days

Payables deferral period is 30 days.

The company needs $1,500,000 for a new project.

The loan will cost 10% simple interest, for 4 months, with a 20% compensating balance.

If sales are all credit sales and amount to $4,000,000 per year, what is the firm's average investment in receivables?

Reference no: EM132932287

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