Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide $360,000 in additional credit sales, 14 percent are likely to be uncollectible. The company will also incur $17,200 in additional collection expense. Production and marketing costs represent 74 percent of sales. The firm is in a 20 percent tax bracket and has a receivables turnover of six times. No other asset buildup will be required to service the new customers. The firm has a 12 percent desired return.

Calculate the incremental income after taxes if 17 percent of the new sales prove to be uncollectible.

Calculate the return on incremental investment if 17 percent of the new sales prove to be uncollectible. (Input your answer as a percent rounded to 2 decimal places.)

Calculate the return on incremental investment if the receivables turnover drops to 2.0 and 14 percent of the accounts are uncollectible. (Input your answer as a percent rounded to 2 decimal places.)