An expansion at fey, inc., would increase sales revenues by $150,000 per year and cash operating expenses by $47,000 per year. the initial investment would be for equipment that would cost $328,000 and have an 8 year life with no salvage value. the annual depreciation on the equipment would be $41,000. the simple rate of return on the investment is closest to (ignore income taxes.):

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?