First 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 from $30 to $35. Expected sales will increase by 600 units per year. The original sales are 7,000 units per year. Variable costs will remain at $18 per unit and bad debt losses will amount to $12,000 per year. The firm will finance additional investment in receivables by using a line of credit, which charges 5% interest. The firms tax rate is 40%. Calculate the NPV of this switch