eBook Problem 7-07 An investment will generate $12,000 a year for 25 years. If you can earn 12 percent on your funds and the investment costs $100,000, calculate the present value of investment. Use Appendix D to answer the question. Round your answer to the nearest dollar.$   Should you buy it?-Select-YesNoItem 2 Calculate the present value of investment, if you could earn only 8 percent. Use Appendix D to answer the question. Round your answer to the nearest dollar.$   Should you buy it in this case?-Select-YesNo

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.