Hurkin Manufacturing Company pays accounts payable on the tenth day after purchase. The average collection period is 30 days, and the average age of inventory is 40 days. The firm currently spends about $18 millions on operating cycle investments. The firm is considering a plan that would stretch its account payable by 20 days. If the firm pays 12 percent per yearfor its financing, what annual savings can it realize by this plan? Assume no discount for early payment of trade kredit and a 360- day year. (15 marks) 4