Initiating a cash discount???Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 2?%

cash discount for payment within 15 days. The? firm's 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 change in credit terms will result in an increase in sales to 42,000 ?units, that 70?%

of the sales will take 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? offered???

?(Note?: Assume a? 365-day year.)