please answer questions 18-21

nes that a score of at least 0.7 indicates a very good credit risk, and it will extend credit to the individuals. If Janice is employed half time, is a homeowner, and has 2 credit cards at present, does the model indicate she should receive credit? 18. Emily Cheney is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $40,000 per day in new sales. On average, they will pay in 68 days. The variable cost ratio is 80%, collection expenses are 2% of sales, and the cost of capital is 10%. What is the NPV of one day's sales if Emily grants credit? Assume that there is no bad debt loss. Use the following information for questions 19-21. Your firm's CFO has tasked you with evaluating the net present value associated with changing the firm's trade credit terms from net 30 days to net 45 days.Other pertinent assumptions include: Annual sales with existing credit terms = $5,000,000 Variable cost ratio with existing credit terms = 30% of revenues Costs of collections with existing credit terms = 1% of revenues Bad debt expense ratio with existing credit terms=2% of revenues Annual sales with new credit terms = $5,500,000 Variable cost ratio with new credit terms = 30% of revenues Costs of collections with new credit terms = 1% of revenues Bad debt expense ratio with new credit terms = 3% of revenues Discount rate = 10% 19. What is the daily net present value of the current trade credit policy? Assume that the variable costs are paid upfront while the costs of collections occur when the payment is received from the customer. 20. What is the daily net present value of the new trade credit policy? Assume that the variable costs are paid upfront while the costs of collections occur when the payment is received from the customer. 21. What is the aggregate increase in net present value from making this change to trade credit policy