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Cash Conversion Cycle

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How can a company reduce its cash conversion cycle?

What are some of the disadvantages (at least 3) of the payback rule in capital budgeting?

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The expert determines how can a company reduce its cash conversion cycle. The disadvantages of the payback rule in capital budgeting is determined.

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Cash conversion cycle is the time duration in which a firm is able to convert its resources into cash. It is actually the total time period required to first convert resources into inventories, then inventories into finished goods, and then goods into sales. Here the resource may include raw material, labor, power and fuel etc. In other words it can be defined as the time taken to collect cash from sale of the after making ...

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