Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering a 2% cash discount for payment within 15 days. The firms current average collection period is 60 days, sales are 40,000 units, selling price is $45 per unit, and variable cost per unit is $36. The firm expects that the proposed change in credit terms will result in an increase in sales to 42,000 units, that 70% of the sales will take advantage of the discount, and that the average collection period will fall to 30 days.If the firm's required rate of return on equal risk investments is 25%, should the proposed discount be given? What am i supposed to find and how to start on this?