Your firm's average daily transaction consists of a sales order for $75,000.COGS is generally equal to 60% of the sale.Assume that your firm's DPO is 15 days and that the operating cycle is 80 days.Further, the discount rate used for valuing working capital decisions is 9%.

1. Calculate the NPV of the typical sales transaction.
2. Recalculate the NPV, assuming an increase in DPO to 30 days.
3. Estimate the all-in effect of the increase in DPO using a daily perpetuity approach.