What is the interpretation of the Days Sales Outstanding (DSO)?

	The DSO represents the inventory turnover.
	The DSO represents the average collection period.
	The DSO represents the amount of accounts receivable.
	The DSO represents the average time of accounts payable.

Suppose you were offered the following alternatives: (a) a 3-year annuity with payments of $1000 at the end of each year or (b) a lump sum payment today. You have no need for the money during the next 3 years, so if you accept the annuity you would simply deposit the payments in a savings account paying 4 percent interest. How large must the lump sum payment be to make it equivalent to the annuity?

	$1,124.86
	$2,775.10
	$1,216.65
	$3,717.10