CF -COGS PV = DailyNPV Revenues NPV = NPV 1+ *D 365 (DPO) 365 1+ (DIH +DSO) 365 365 2) Adopting New Credit Terms - A firm believes it would experience an increase in NPV of $287.50 per day (note: this is the daily NPV) if it adopts new credit terms. If the annual opportunity cost of capital (i) is 5%, calculate the perpetual (aggregate) increase in shareholder value (NPV) from adopting the new terms. Recalculate the total increase in shareholder value using a i of 8%. Comment on the difference