There is a common phrase in business Cash is flow is the life blood of a company. Without it, a company will fai

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  • There is a common phrase in business Cash is  flow is the life blood of a company. Without it, a company will fai
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There is a common phrase in business Cash is flow is the life-blood of a company. Without it, a company will fail" (Hicks, 2012). Yet, companies often have to take risks that could potentially jeopardize their cash flow (e.g., new projects, growth, capital budgeting, etc.). Assume you are the CFO of a struggling company. While you do have a positive cash flow, it is minimal at best. If something does not change soon, the company will go under. Fortunately, your product development team has just created a new product that will not only save the company from financial demise but will also revolutionize how the industry does business. The problem is that the product is still 2 years away from being able to be sold to the public, and you will run out of cash...

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vomms
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Published On:
07/07/2019
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07/07/2019
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