Problem 9: Phoenix Lambert currently sells its goods cash-on-delivery. However, the financial manager believes that by offering credit terms of 2/10 net 30, the company can increase sales by 20%, without significant additional costs. If the interest rate is 6% and the profit margin is 896, would you recommend offering credit? Assume first that all customers take the cash discount. Then assume they all pay on day 30. Joe's hint: I would start by assuming the company has $100 in sales, and then calculate the PV of profits for all three scenarios: no credit (as it is right now with cash only), credit in which everyone takes the discount, credit in which everyone pays as late as possible