3. A seller is considering extending trade credit to an existing customer that buys on cash terms. The customer has just placed a sales order (cash terms) for immediate delivery of 100 units at a sales price per unit of $50. The customer states that they will increase their sales order by 5 percent if they receive a 30-day credit period. Variable costs are $45 per unit and involve an immediate cash outflow. If the seller has an annual opportunity cost rate of 7.3 percent, what is the NPV of extending credit to the customer? 4. Using the information from problem 3, calculate the break-even quantity sold that would make the seller indifferent between extending credit or continuing to sell on cash terms