INSTRUCTIONS: Answer ALL the following questions. 1. Consider the following financial Information for Payne Lid for the year ending December 31. 2021 is as follows Table 1. The firm has a current annual outlay of $4,200,000 on operating cycle investments. The company currently pays 10 percent for its negotiated financing. (Assume a 360 -day operating year.) Required: I. Calculate the operating and cash conversion cycle for the company (lo marks) II. Calculate the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days (5 marks) 2. Harbour view Hardware provides the following data: Current annual credit sales =12000000 The firm proposes to offer a 3/10, net /30. The firm anticipates 25% of its customers will take advantage of the discount. As a result of the discount policy, the collection period will be reduced to 11/2 months. Required: Should the firm offer the new discount policy to its customers