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1. A major difference between a venture’s operating cycle and the cash conversion cycle is the conversion cycle includes the time to:

buy materials

produce a finished good

collect sales made on credit

pay suppliers for purchases on credit

2. Everything else equal, which of the following will result in the lowest present value of an amount to be received in the future?

a. Monthly compounding of interest.

b. Simple interest.

c. Quarterly compounding of interest.

d. Annual compounding of interest.

e. Semi-annual compounding of interest.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92714544

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