Minimize the negative cash flow

Reference no: EM1355962

Congratulations! Your small company was just awarded a lucrative contract to provide hundreds of widgets to the US Government. If you perform well, you'll be on "easy street" with all the follow-on business. It will take you 6 months to produce and deliver the units. The US Government will not provide up front payments (payments prior to delivery) and, is notoriously late on paying "net 30" invoices.

a. What can you do to minimize the negative cash flow of this deal?

b. How are you going to keep your company afloat until you get paid?

Reference no: EM1355962

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