the 2nd photo is the 2nd half of the question

14. (Payment date) A company with annual sales of $22,000,000 is considering changing its payment terms from net 40 to net 30 to encourage customers to pay more promptly. The company forecasts that customers would respond by paying on day 30 rather than on day 45 as at present (assume a 360-day year) but would decrease their purchases by $400,000 per a year. It also forecasts that its idle cash balance would decrease by $100,000 and administrative costs would be reduced by $50,000. The company's variable costs average 65% of sales, it pays taxes at a 21% rate, and it has a 12% cost of capital. a. Calculate the incremental cash flows from accept- ing this proposal. b. Organize your cash flows from part a into a cash flow spreadsheet. c. Calculate the proposal's NPV, IRR, and NAB. d. Should the company shorten its payment terms? 14. (Payment date) A company with annual sales of $22,000,000 is considering changing its payment terms from net 40 to net 30 to encourage customers to pay more promptly. The company forecasts that customers would respond by paying on day 30 rather than on day 45 as at present (assume a 360-day year) but would decrease their purchases by $400,000 per a year. It also forecasts that its idle cash balance would decrease by $100,000 and administrative costs would be reduced by $50,000. The company's variable costs average 65% of sales, it pays taxes at a 21% rate, and it has a 12% cost of capital. a. Calculate the incremental cash flows from accept- ing this proposal. b. Organize your cash flows from part a into a cash flow spreadsheet. c. Calculate the proposal's NPV, IRR, and NAB. d. Should the company shorten its payment terms