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A company has an Inventory Turnover Period (ITP) of 60 days and a receivable Collection Period of 30 days. This company has a net profit

A company has an Inventory Turnover Period (ITP) of 60 days and a receivable Collection Period of 30 days. This company has a net profit rate of 20% (sells the goods for %20 more than its unit cost).

How much in percent will be the increase in its annual potential profitability if it decreases its ITP to 30 days?

A.

207,36%

B.

107,36%

C.

91,23%

D.

198,6%

E.

120%

F.

80%

G.

40%

H.

298,6%

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