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Helvet Sum Check my work 5 Problem 7-20 Credit policy decision with changing variables (L07-4) 10 Slow Roll Drum Co is evaluating the extension of

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Helvet Sum Check my work 5 Problem 7-20 Credit policy decision with changing variables (L07-4) 10 Slow Roll Drum Co is evaluating the extension of credit to a new group of customers. Although these customers we provide $540.000 in additionat credit sales, 15 percentate likely to be uncollectible The company wil also incur 18,100 in additional collection expert Production and marketing costs represent 72 percent of sales. The firms in a 30 percent tax bracket No other asset bulicup wd be required to service the new customers. The firm has a 12 percent desired return Assume the average collection penodis 180 days o Compute the return on incremental investment (Input your answer as o percent rounded to 2 decimal places. Us a 360-day yer) F Rotun incrementatives b. Should credit be extended to the new group of customers NO NE

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