H$-$Solo, Inc. has daily transaction of a sales order of $$150,000.$ COGS is generally equal

to $80\%$ of the sale. Assume the firm$$s DPO is $45$ days and the operating cycle is $100$

days. Further, the discount rate used for valuing working capital decisions is $5\mathrm{.}0\%.$

a$.$ Calculate the NPV of the typical daily sales transaction. $($

b$.$ If H$-$Solo decreased its operating cycle by $30$ days, what is the impact on NPV$?$

c$.$ What is the $\backslash$Delta NPV$?$

d$.$ What is the impact on firm value if this transaction is assumed to continue

indefinitely?