The process of evaluating and selecting long-term investments that align with the firm's goal of wealth maximization.
Leo had just inherited his family’s mid-sized parts factory, and the books were a mess. Despite steady sales, the company was constantly running out of cash. Remembering his studies from Gitman and Zutter’s Principles of Managerial Finance principles of managerial finance 15th edition
By mid-quarter, cash flow was tight. Leo turned to the sections on Working Capital Management He tightened the Accounts Receivable He negotiated better terms with Accounts Payable He optimized the Inventory Turnover The Result: principles of managerial finance 15th edition