Lewis Lumber is considering changing its credit terms from net $55$ to net $30$ to bring its terms in line with other firms in the industry. Currently, annual sales are $$342,000,$ and the average

collection period $($DSO$)$ is $64$ days. Lewis estimates tightening the credit terms will reduce annual sales to $$337,000,$ but accounts receivable would drop to $48$ days of sales. Lewis' variable cost

ratio is $60$ percent and its average cost of funds is $15$ percent. Should the change in credit terms be made? Assume all operating costs are paid at the time inventory is sold and all sales are

collected at the DSO. Assume there are $360$ days in a year. Do not round intermediate calculations. Round your answers to the nearest cent.

The NPV for the existing credit policy, that is $

$,$ is $|$

the NPV for the proposed credit policy, that is $

$.$ Thus, Lewis Lumber

$|$ change its credit policy.