A firm is evaluating a $25,000 sales opportunity (S) for a new customer. The Variable Cost Ratio (VCR) is 85% of sales. Collection Costs (EXP) are 2% of sales per CP beginning with second CP. After 90 days the invoice will be turned over to a collection agency that collects, on average, 40% of the invoice amount earning a 50% commission based on amount collected. The firm's cost of capital is 129 (1). What are the COLLECTION COSTS (EXP) for the 76-90 Days CP bucket if the new customer account performs similarly to existing customers? NPV - S-EXP(S)-VCR(S) 1+1CP Collection Period (CP) OSO Payment Probability Collection Costs Collection Cash (DOP) Flow NPV Expected NPV 90 Days Leded NV of Credit Extension 120 155 100% $500 $1.000 $1,500 None of the above