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Revenue = $50,000 CGS=$40,000 Discount rate =7.30 percent Operating cycle =50 days PO =10 days Building on problem 4, assume that the operating cycle drops

Revenue = $50,000 CGS=$40,000 Discount rate =7.30 percent Operating cycle =50 days PO =10 days

Building on problem 4, assume that the operating cycle drops to 30 days. Recalculate the NPV and also calculate change NPV. Interpret your estimate for change NPV.

*question 4: NPV is $9,585

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