QUESTION 5 Aspen Jeans Limited has collected data about its current operations. The average age of inventory is 55 days; the average collection period is 42 days, and the average payment period is 46 days. The firm has an opportunity cost of short-term financing equal to 9%. Annual investments in the oC amount to $4.8 million. Aspen has been offered a contract to produce private label jeans for a large retailer. If the firm takes the contract, it will increase operating profits by $35 000 and reduce the average age of inventory to 50 days. However, it will increase the length of the collection period to 65 days. No changes will occur the payment period or the amount of oc investments. In all calculations, assume a 365-day year• QUESTION 5 • Aspen Jeans Limited has collected data about its current operations. The average age of inventory is 55 days; the average collection period is 42 days; and the average payment period is 46 days. The firm has an opportunity cost of short-term financing equal to 9%. Annual investments in the OC amount to $4.8 million. Aspen has been offered a contract to produce private label jeans for a large retailer. If the firm takes the contract, it will increase operating profits by $35 000 and reduce the average age of inventory to 50 days. However, it will increase the length of the collection period to 65 days. No changes will occur in the payment period or the amount of OC investments. In all calculations, assume a 365-day year