Use the information in the table below to answer the questions concerning Company C's current credit policy.

net 40

Sales -$9,000,000

Lag factor -3

Cost of capital-8%

Bad debt, % sales-5%

Cost of goods sold, % sales-79%

G&A, % sales-9%

1.What is the present value of the firm's daily net sales?

2.What is the firm's daily cost of good sold?

3.What is the firm's DSO (Net + lag factor)?

4.What is the present value of the firm's daily G&A expense?

5.What is the net present value of the firm's current policy?