Question: 5. Building on problem 4 , assume that the operating cycle drops to 30 days. Recalculate the NPV and also calculate NPV. Interpret your estimate

5. Building on problem 4 , assume that the operating cycle drops to 30 days. Recalculate the NPV and also calculate NPV. Interpret your estimate for NPV. 4. Use the following assumptions to calculate the NPV of the gross profit earned on a one-time sale. Assume that the sale was just placed and the firm will be required to produce the good sold. - Revenue =$50,000 - CGS=$40,000 - Discount rate =7.30 percent - Operating cycle =50 days - DPO=10 days 5. Building on problem 4, assume that the operating cycle drops to 30 days. Recalculate the NPV and also calculate NPV. Interpret your estimate for NPV

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