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Blossom Inc, currently grants no credit, but it is considering offering new credit terms of net 30 . As a result, the price of its

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Blossom Inc, currently grants no credit, but it is considering offering new credit terms of net 30 . As a result, the price of its product will increase by $2 per unit. The original price per unit is $40. Expected sales will increase by 1,000 units per year. The original sales are 11,000 units. Variable costs will remain at $25 per unit and bad debt losses will amount to $2.000 per year. The firm will finance the additional investment in receivables bxysing a line of credit, which charges 5 -percent interest. The firm's tax rate is 20 percent. Calculate the NPV. (Assume Blossom benefits from the credit policy change indefinitely) (Round answer to 2 decimal places, eg. 15.75 . Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (45)). Should the firm begin extending credit under the terms described

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