Primrose Corp has $15 million of sales, $2 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 80% of sales, and it finances working capital with bank loans at an 8% rate.

Required:

1. What is Primrose's cash conversion cycle (CCC)?
2. If Primrose could lower its inventories and receivables by 10% each and increase its payables by 10%, all without affecting sales and cost of goods sold, what would be the new CCC?
3. How much cash would be freed up, and how would that affect pre-tax profit?