evenues are currently $1 million and are projected to stay flat. A new inventory management system would cost $40,000, but would reduce inventory by 50%. Inventories are currently 15% of revenues. By how much would the new inventory management system reduce net working capital in each of the first three years of its implementation?

evenues are currently $1 million and are projected to stay flat. A new inventory management system would cost $40,000, but would reduce inventory by 50%. Inventories are currently 15% of revenues. By how much would the new inventory management system reduce net working capital in each of the first three years of its implementation?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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