Champion Manufacturing turns over its inventory 8 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm's total annual outlays for…

Champion Manufacturing turns over its inventory 8 times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firm's total annual outlays for operating cycle investments are Rs 3.5 million. Assume a 360-day year. a. Calculate the firm's operating and cash conversion cycle. b. Calculate the firm's daily cash operating expenditure. How much in resources must be invested to support its cash conversion cycle? c. If the firm pays 14 percent for these resources, by how much would it increase its annual profits by favorably changing its current cash conversion cycle by 20 days?