1. A firm has made a credit sales with the following credit terms:

• $2,000,000 order, 30-day credit terms
• VCR (0.30) = Variable cost ratio/$ of sales
• EXP (0.05/CP) = Expenses for credit administration and collection/$ of sales
• i (0.10/365) = Daily interest rate
• CP (45 days) = Collection period for sale

1. Calculate the variable cost of this sales
2. Calculate the present value of this sales
3. Calculate the NPV of this sales