Reconsider Comiskey Fence. Assume the average collection period is 120 days. All other factors are the same (including 12 percent uncollectible). Should credit be extended?

Data from Reconsider

Comiskey Fence Co. is evaluating extending credit to a new group of customers. Although these customers will provide $180,000 in additional credit sales, 12 percent are likely to be uncollectible. The company will incur $15,700 in additional collection expenses. Production and marketing expenses represent 70 percent of sales. The company has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 15 percent desired return on investment.