Barness Corporation, with sales of $6,480,000, is considering changing its terms from "net 40" to "2/15, net 30." Currently, customers pay on day 45. The company forecasts that 60% of its customers would take the discount and pay on day 15 while the remainder would continue to pay on day 45 (use a 360-day year). Sales is not expected to change. Idle cash balances would also decrease by $30,000. Barness's variable costs are 80% of sales, its tax rate is 40%, and it has a 14% cost of capital.
What is the net present value (NPV) of the proposal?

A.$ 85,543.

B.$ 20,743.

C.– $201,429.

D.– $ 44,057.