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A firm has a cash conversion cycle of 60 days. Annual outlays are P12 million and the cost of negotiated financing is 12 per cent.

A firm has a cash conversion cycle of 60 days. Annual outlays are P12 million and the cost of negotiated financing is 12 per cent. If the firm reduces the average age of inventory by 10 days, the annual savings is____________(Round your answer to the nearest peso)

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