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
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter9: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 6Q
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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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