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We have the following information about the operations of Eden Company: Annual sales $78 million Variable cost ratio 65% Number of days sales outstanding 95

We have the following information about the operations of Eden Company:

Annual sales

$78 million

Variable cost ratio

65%

Number of days sales outstanding

95 days

Number of days in payables

35 days

Inventory turnover ratio

3.21

Cost of capital

11%

(A) Find the NPV of its operating cycle.

(B) What is the NPV if the payments can be delayed by 3 days, and collections accelerated by 3 days?

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