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Assignment Saved Help Save & Exit Check Henderson Office Supply is considering a more liberal credit policy to increase sales but expects that 9 percent

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Assignment Saved Help Save & Exit Check Henderson Office Supply is considering a more liberal credit policy to increase sales but expects that 9 percent of the new accounts will be uncollectible. Collection costs are 6 percent of new sales, production and selling costs are 74 percent, and accounts receivable turnover is four times. Assume income taxes of 20 percent and an increase in sales of $65,000. No other asset bulldup will be required to service the new accounts a. What additional Investment in accounts receivable is needed to support this soles expansion? Incremental accounts receivable ces b. What would be Henderson's incremental aftertax return on investment? (Input your answer as a percent rounded to 2 decimal places.) Retum on incrumental investment % c. Should Henderson liberalize credit if a 16 percent aftertax return on investment is required? Yes No Actime that Honderen alen noore to increaca le lonfinantnine nat nou talae and that inventore non time

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