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Please help with the following questions, thank you it is much appreciated. 1. Why is the increase in inventories of raw materials deducted from purchases

Please help with the following questions, thank you it is much appreciated.

\1. Why is the increase in inventories of raw materials deducted from purchases in the by nature income statement format?

2. What is the discount factor equal to?

3. How is an investment decision analyzed from a cash standpoint?

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