NZL Inc. is a well-known and reputable supplier of integrated circuits to manufacturers of telecommunications devices. The firm is currently debating whether to expand its sales to car manufacturers. While the firm expects an extra $2,400,000 in sales if it enters this market, it also knows that 15% of its sales will ultimately be uncollectible. In addition, collection costs will be 2% on all new sales and the firm's production costs are 72% of sales. Selling expenses are 7% of sales and MHS has an opportunity cost of funds of 25% MHS Inc can turn its receivables 4 times per year. (Round all answers to no decimal places)

1. What would be the increase in income?

2 What is their increased investment in Accounts Receivable?

3. What is the opportunity cost?

4. Should MHS Inc enter the car telephone manufacturer market? Yes or no?