Name (35 points) 28. Rarified Air, a manufacturer of air purifiers, believes it can increase sales and profitability if they relax their credit terms. The marketing department thinks that Rarified can increase annual sales from $60 million to $64 million with the new credit terms. The treasury department believes that the bad debt ratio will increase to 3% from 1 % and that the average collection period will increase from 45 days to 55 days. Rarified Air's profit contribution ratio is 10%. The company's pretax rate of return is 15%. Should the credit terms be extended? Justify your answer with a credit extension analysis