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A company is forecasting its monthly cash position based on providing its clients 90-day terms to pay for its services. Because of giving 90-day terms,

A company is forecasting its monthly cash position based on providing its clients 90-day terms to

pay for its services. Because of giving 90-day terms, the company is forecasting large negative

cash flow for three months in a row. Is the negative cash flow reason to not move forward

with giving clients 90-day terms? Explain, including what variables or factors that have to be affected

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