J. James Book Publishers is trying to decide whether to offer a 3% cash disc payments made within 10 days, making its new terms 3/10, net 30 paying customers currently pay in 40 days under its present terms of ne analyst estimates that sales will stay the same. The existing bad-debt loss the rate under the new policy will be the same. It is estimated that 40% paying customers will continue to pay in 40 days, on average. The company s cost of capital is 10% Annual sales will remain unchanged at $250 million, and the ount for rage, its t 30. A sales rate is 3%; f J. James variable cost ratio will continue to be 60%. The variable expenses for credit administration and collections will drop from 5% to 4% if the cash discount is implemented