What Is the Cash Conversion Cycle for a Firm with a Receivables

question 7

Multiple Choice

What is the cash conversion cycle for a firm with a receivables period of 40 days, a payables period of 30 days, and an inventory period of 60 days?

• A) 10 days
• B) 50 days
• C) 70 days
• D)130 days

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Definitions:

Optimal Response

Optimal response is a strategy that maximizes a player's benefits given the strategies chosen by others, commonly used in game theory.

Nash Equilibrium

A concept in game theory where no player can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Pure Strategy

In game theory, a strategy where a player consistently chooses a specific action.

Mixed Strategy Equilibrium

in game theory, is a situation where players in a game choose a mixture of strategies probabilistically.