Langanga Auto Springs Company noqulre s total 6d 20,9580 tars of stoal 010 mostars cadyj of gauga places two orders of inventory of tory for a production run. Assume that Lun 10,000 steel bars each. Inventory would be paid for witli cash, and ordering and holding costs would be paid at the end of the production run. Each stoel bar costs Kahs A50, order costs are Kshs.50 per average inventory unit (steel bar) Lunganga hus cost of capital of 10% Assume the inventory is consumed at a steady rate and the production run is 80 days The financial manager of Lunganga wants to make certain that his inventory decisions maximize shareholder wealth. Required: a) What is the present value cost of managing the inventory process? (10 marks) The financial manager is considering a change in inventory policy. She is considering increasing the number of orders to 4 for each production run. Would you recommend that this policy change be implemented? Support your recommendation with appropriate computations b) (10 marks) c) Why is inventory such a difficult working capital item to manage