Requesting assistance with the excel roster. Please post the formulas used.

ht B a) Effective Annual Rate (EAR) G . D E b) Average Collection Period c) One Time Client Notional purchase Discount (%) 5 Days difference Gross revenue Avg. receivables before new policy % paying early Avg. receivables after new policy Change in receivables Cost of capital Projected savings in capital costs minus: discounts Projected savings net of discounts Gross margin Gross revenues must rise by: in dollars in percent Repair cost Default probability NPV of client Break-even probability Extend credit if probability of getting paid is higher than 7 Discount (S) 8 Rate(%) 9 Days difference in 1 year 10 11 EAR 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Prob. 2 MR 2021 2. Question 2 consists of parts a, b, and c- a. Argo sells maintenance services to various private jet operators. For these, it demands payment within 20 days. Argo is considering changing this policy to 0.5%/4, net 20. What is the implicit effective annual rate in this payment policy? Use a notional purchase of $1,000. b. Argo's maintenance service business grosses some $8M per year before discounts and its average days receivable is 25 (unlike the overall business where this number is -15). If 45% of Argo's clients opt to pay earlier and get the 0.5% discount, what will be the change in the service business's receivables? If Argo's cost of capital is 5.5%, what are the projected savings of this change in policy? If Argo's gross margin is 25%, by how much will gross dollar revenues have to rise to offset the loss from discounts? In percent? c. A new client from out of town is quoted $3,300 for a repair. The service people ask you to approve this. You do a quick check on the client and assess an 5% default risk. What is the NPV of the client? What is the break-even probability? What is the minimum probability of collecting for you to approve the service