Question: Nanaimo Products is concerned about managing cash efficiently. On average, inventories have an age of 90 days, and accounts receivable are collected in 60 days.

Nanaimo Products is concerned about managing cash efficiently. On average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid about 30 days after they arise. The firm's operating investments are $20 million per year.

What is the total amount of financial resources needed to support the cash cycle?

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