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A company has a cash conversion cycle of 5 0 days. Annual outlays are R 1 0 million and the cost of negotiated financing is

A company has a cash conversion cycle of 50 days. Annual outlays are R10 million and the cost of negotiated financing is 9%. Calculate its annual savings if the company reduces its average age of inventory by 15 days. Assume 360 days per year.
a.
R125000
b.
R 15679
c.
R 87500
d.
R 37500

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