of the factor arrangement? 36. (LO 24.2) ABC Inc, grants credit terms of net 25. It is considering a new policy that involves more stringent credit terms: nel 20. As a result, the price of its product will stay the same at $45. The expected sales will decrease by 2,000 per year to 10,000 units. Variable costs will remain at $37 per unit and bad debt losses can be reduced by $1,000 per year to $2,000. ABC Inc. will finance the additional investment in receivables using its line of credit , which charges 5-percent interest after tax, and its tax rate is 30 pereent. Should ABC Inc. switch to the new policy