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can you please solve this Fast Turnstiles Co. Is evaluating the extension of credit to a new group of customers. Although these customers will provide

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Fast Turnstiles Co. Is evaluating the extension of credit to a new group of customers. Although these customers will provide $414,000 In additional credit sales, 8 percent are likely to be uncollectible. The company will also incur $17.400 in additional collection expense. Production and marketing costs represent 76 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of five times. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return a-1. Calculate the Incremental income after taxes. Incremental income after taxes a-2. Calculate the return on incremental investment. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental Investment a-3. Should Fast Turnstiles Co. extend credit to these customers? Yes No b-1. Calculate the incremental income after taxes i 11 percent of the new sales prove to be uncollectible lacremental income after taxes b-2 Calculate the return on Incremental Investment of 11 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment b-3. Should credit be extended if 11 percent of the new sales prove uncollectible? o Yes O No c-1. Calculate the return on incremental investment if the receivables turnover drops to 1.6 and 8 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment C-2 Should credit be extended if the receivables turnover drops to 16 and 8 percent of the accounts are uncollectible? O No Yes

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