If the cash discount period is increased, the firm's investment in accounts receivable due to discount takers still getting cash discounts but paying later is expected to

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If the cash discount period is increased, more customers will be incentivized to take the discount and pay later. As a result, the firm's investment in accounts receivable increases due to the increased number of customers who take the discount but don't pay immediately.

If the Cash Discount Period Is Increased, the Firm's Investment