7) Company A is contemplating building a new plant. The company anticipates that the plant will require an initial investment of $4,994,648 in net working capital today. The plant will last 10 years, at which point the full investment in net working capital will be recovered. Given an annual discount rate of 7.71%, what is the net present value of this working capital investment?

a) Assume the credit terms offered to your firm by your suppliers are 2/7, net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30.

b)