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- How much is the gross benefit (annual return on the investment of increase in the average cash balance) of the lockbox system?Should the company make the investment and adopt the lockbox system? Yes or noDefine the following terms: inventory conversion period, average collection period, and payables deferral period. Explain how these terms are used to form the cash conversion cycle. How would a reduction in the cash conversion cycle increase profitability? What are some actions a firm can take to shorten its cash conversion cycle? V.What should a firm’s goal be regarding the cash conversion cycle? Explain
- What should a firm’s goal be regarding the cash conversion cycle,holding other things constant? Explain your answer.Comment on the company that has a longer Cash Conversion Cycle. Do they need to improve cycle? Give your insights.What is cash conversion cycle and how is it different from operating cycle? (Short answer and keyboard leaters please)
- How can we estimate the profits (more precisely, the cash nows) that the assets will generate during its service?Which of the following situation is better for the company? O a. All of these O b. Cash conversion cycle should be shorter Oc. Cash conversion cycle should longer O d. Fixed cash conversion cycleExplain different methods for cash transactions and the costs associated with each. How these costs can be reduced? (Provide examples to support your justifications)
- Explain in detail with examples of different methods for cash transactions, and the costs associated with each. Provide brief justification on how these costs can be reduced?What are some tools that companies have to manage their (net operating) working capital? Provide examples of inventory and receivables management techniques. What is the Cash Conversion Cycle and why is this a useful metric? Are there risks if this is too low?Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRR
