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3. Determine if Empire Limited should approve of the change in the credit terms to customers from 3/10 net 30 to 6/10 net 30, if

3. Determine if Empire Limited should approve of the change in the credit terms to customers from 3/10 net 30 to 6/10 net 30, if the required rate of return on equal- risk investments is 20%. Motivate your answer with the relevant calculations. (Assume that the company will not take advantage of discounts from the supplier.) Ignore the carrying and ordering costs.

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