The following information about the operations of Hancock Company is available.

Annual sales $185 million Cost of goods sold $125 million Average accounts receivable $25 million Average accounts payable $15 million Average inventory $30 million Cost of capital 12% (A) Find the NPV of its operating cycle. (B) What is the new NPV if Hancock can delay the payments by 2 days and make the collections 2 days earlier? By comparing the answers to (A) and (B), can you tell if the company made the right move? (A) $20.253 million, (B) $20.026 million