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Consider a company that is starting up a new product line. They annual raw material needed...

Consider a company that is starting up a new product line. They annual raw material needed is $250,000 and the annual finished product sells for $500,000. They need 2 weeks of raw material and 2 weeks of finished products in inventory. The suppliers give them 5 weeks of credits and the company extends 1 week of credit to their costumers.

How much working capital does the company need?

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