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HelinCorp does not offer credit, but it is considering offering new credit terms of one period. As a result, the price of its product will

HelinCorp does not offer credit, but it is considering offering new credit terms of one period. As a result, the price of its product will increase by $4 from $32. Expected sales will increase by 600 units per period. The original sales are 6,500 units per period. Variable costs will remain at $18 per unit and bad debt losses will amount to $14,000 per period. The firm will finance additional investment in receivables by using a line of credit, which charges 5% interest for each period. The firms tax rate is 45%. Calculate the NPV of this switch (Do not use the $ sign. If your answer is -$12,000, enter -12000, and if your answer is +$12,000, then enter 12000).

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