Suppose that a steel mill has been selling to customers on terms of net $30.$ The firms is considering extending the credit terms to net $45$ in an effort to increase sales. Why would extending the credit terms increase sales?

Longer credit terms provides liquidity for customers.

Extending the credit terms will lower the cost of financing for the steel mill.

The change will shorten the steel mill's DSO and cash conversion cycle.

Extending the credit terms to net $45$ will result in lower interest rates when the steel miills customers borrow from their banks.