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Consider a company that is starting up a new product line. They annual raw material needed is $100,000 and the annual finished product sells for
Consider a company that is starting up a new product line. They annual raw material needed is $100,000 and the annual finished product sells for $500,000. They need 1 week of raw material and 3 weeks of finished products in inventory. The suppliers give them 2 weeks of credits and the company extends 4 weeks of credit to their costumers.
How much working capital does the company need?
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