QUESTION 20 A customer just placed a $70 purchase order from your firm. To facilitate the sale, you must purchase $30 in inventory from a supplier. The invoice for the inventory is payable in 20 days. Assuming a discount rate of 3.65% and that the timing of the collection of cash from the customer is delayed by an operating cycle of 70 days, the present value of the cash outflow associated with this credit sale is closest to a.-$30.00 O b.-$29.94 Oc-$29.79 Od. -$28.75 QUESTION 21 HPH, Inc. just made a credit sale of $250,000. Collection on this credit sale will be delayed by the length of the operating cycle. The CGS associated with this credit sale equal $50,000, and are delayed by days' payable outstanding. Use the following information to calculate the increase in firm value that would occur by achieving the industry median cash flow timing given below: - Current cash flow timing: DIH = 50 days, DSO = 60 days and DPO = 30 days - Industry median cash flow timing: DIH = 20 days, DSO =25 days and DPO = 30 days - Discount rate = 5.65% a. $2,456 Ob. $10,456 O c. $25,105 d. None of the other choices