3. [20 points) Active Gear is much better at managing inventory than Mercury. In Table 1, we see that Active Gear's days sales in inventory is 2/3rds of Mercury Athletic. Liedtke thinks he may be able to apply the same inventory management to Mercury. Suppose that, starting in 2008, Mercury is able to cut its inventory to be 2/3rds of what Liedtke initially projected in exhibit 7. For example, Mercury's inventory in 2008 would be 2/385,465=$56,977. Assume that nothing else changes except Mercury's inventory levels from 2008 and beyond (eg no change in EBIT, CAPX, etc). Repeat question 1 to account for this reduced inventory. How much is Liedtke willing to pay for Mercury's operations? 3. [20 points) Active Gear is much better at managing inventory than Mercury. In Table 1, we see that Active Gear's days sales in inventory is 2/3rds of Mercury Athletic. Liedtke thinks he may be able to apply the same inventory management to Mercury. Suppose that, starting in 2008, Mercury is able to cut its inventory to be 2/3rds of what Liedtke initially projected in exhibit 7. For example, Mercury's inventory in 2008 would be 2/385,465=$56,977. Assume that nothing else changes except Mercury's inventory levels from 2008 and beyond (eg no change in EBIT, CAPX, etc). Repeat question 1 to account for this reduced inventory. How much is Liedtke willing to pay for Mercury's operations