After 90 days, the invoice is turned over to a collection agency that collects, on average, 50% of the invoice one month after the referral and charges a 30% commission on the invoice amount (not the amount collected). Re-calculate the NPV and determine if trade credit should still be offered. (1) COLLECTION PERIOD (CP) (2) DSO Expected NPV of Credit Extension (3) PAYMENT PROBABILITY (4) COLLECTION COSTS (EXP) (5) COLLECTION CASH FLOW (6) PV [PV of Column (5) less (VCR)(S) (7) Expected PV [Column (3) x Column (6)]