Bradford Construction Supply Company is suffering from a prolonged decline in new construction in its sales area. In an attempt to improve its cash position, the firm is considering changes in its accounts-payable policy. After careful study, it has determined that the only alternative available is to slow disbursements. Purchases for the coming year are expected to be $37.5 million. Sales will be $65 million, which represents about a 20 percent drop from the current year. Currently, Bradford discounts approximately 25 percent of its payments at 3 percent, 10 days, net 30, and the balance of accounts is paid in 30 days. If Bradford adopts a policy of payment in 45 days or 60 days, how much can the firm gain if the annual opportunity cost of investment is 12 percent? What will be the result if this action causes Bradford Construction suppliers to increase their prices to the company by 12 percent to compensate for the 60-day extended term of payment? In your calculations, use a 365-day year and ignore any compounding effects related to the expected returns.