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he calculation for assessing the value of a firm's new logistics information system is below. Which of the answers will result in the highest cash flow increase to the company, making it worth the investment. Cash Flow Increase = Invoice Value x (Cost of Capital/365) x Difference in Days in the Order-to-Cash Cycle Group of answer choices If the investment causes a dramatic increasing in the order to cash cycle days If the investment causes a dramatic decreasing the order to cash cycle days If the firm borrows money to make the investment (debt financing) at a very low cost If the investment allows sales to remain stable

he calculation for assessing the value of a firm's new logistics information system is below. Which of the answers will result in the highest cash flow increase to the company, making it worth the investment. Cash Flow Increase = Invoice Value x (Cost of Capital/365) x Difference in Days in the Order-to-Cash Cycle Group of answer choices If the investment causes a dramatic increasing in the order to cash cycle days If the investment causes a dramatic decreasing the order to cash cycle days If the firm borrows money to make the investment (debt financing) at a very low cost If the investment allows sales to remain stable

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The calculation for assessing the value of a firm's new logistics information system is below. Which of the answers will result in the highest cash flow increase to the company, making it worth the investment.

Cash Flow Increase = Invoice Value x (Cost of Capital/365) x Difference in Days in the Order-to-Cash Cycle

Group of answer choices

  • If the investment causes a dramatic increasing in the order to cash cycle days
  • If the investment causes a dramatic decreasing the order to cash cycle days
  • If the firm borrows money to make the investment (debt financing) at a very low cost
  • If the investment allows sales to remain stable
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