Henderson Office Supplies is considering a more liberal credit policy to increase sales, but it expects that 5 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production costs are 80 percent of sales and accounts receivable turnover is five times. Assume an increase in sales of $79.000. No other asset buildup will be required to service the new accounts a. What is the level of investment in accounts receivable to support this sales expansion? Investment in accounts receivable $ 15800 b. What would be Henderson's incremental before-tax return on investment? Return on incremental investment % c. Should Henderson liberalize credit ita 35 percent before-tax return is required fopportunity cost of capital Yes O No