How do the intricacies of working capital management and dividend policy decisions illustrate the application of time value of money principles in financial management?

Select one:

Working capital management emphasises optimising short$-$term liquidity, while dividend policy focuses on long$-$term investment returns

Working capital management emphasises cash flow optimisation for operational efficiency, while dividend policy decisions concentrate on reducing trade payables

Working capital management centres on minimising debt, while dividend policy prioritises maximising interest$-$free capital

Working capital management involves leveraging free capital for immediate investment, while dividend policy decisions consider the timing of cash flows for shareholder benefits

Working capital management aims to extend debt repayment periods, while dividend policy focuses on minimising inventory levels