Which of the following conditions must exist for a firm to make a change in its existing credit policy?

Group of answer choices

1-Days sales outstanding (DSO) must decline if the new policy is implemented.

2-Bad debts must decrease if the new policy is implemented.

3-The new policy's net present value (NPV) must be both positive and greater than the existing policy's NPV.

4-Sales must increase if the new policy is implemented.

5-The firm's variable costs should decrease if the new policy is implemented.