Tony's
  TV Shop is analyzing the performance of its cash management. On average, the
  firm holds inventory 75 days, pays its suppliers in 30 days, and collects its
  receivables in 20 days. The firm has a current annual outlay of $2,450,000 on
  operating cycle investments. Tony's currently pays 12 percent for its
  negotiated financing. (Assume a 360 day year.)


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