(Discounts) A company with annual sales of $2,500,000 on terms of net 30 and a collection period of 40 days (assume a 360-day year) is considering offering customers terms of 2/15, net 30. The company forecasts that 60% of the customers would take the discount and pay on day 15 while the remaining 40% would pay on day 35 average. Customers are also expected to increase their purchases by $100,000, and the company forecasts that its idle cash balance would decrease by $60,000. The company's variable costs average 75% of sales, it is in 35% marginal tax bracket, and it has 10% cost of capital. Calculate the incremental cash flows from accepting this proposal. Organize your cash flows from part a into a cash flow spreadsheet. Calculate the proposal's NPV, IRR, and NAB. Should the company offer the discount?