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Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount The firm is considering otoring a 5% cash

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Initiating a cash discount Gardner Company currently makes all sales on credit and offers no cash discount The firm is considering otoring a 5% 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 $46 per unit, and variable cost per unit is 534 The firm expects that the change in credit term will result in an increase in sales to 41000 units that 70% of the sales will take the discount and that the averape collection period will fall to 30 days of the firm's required rate of return on equal risk Investments is 10%, should the proposed discount be offered? (Note Assume a 365 day year)

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