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Slow Roll Drum Company is evaluating the extension of credit to a new group of customers. Although seese customers will provide $252,000 in additional credit

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Slow Roll Drum Company is evaluating the extension of credit to a new group of customers. Although seese customers will provide $252,000 in additional credit sales, 8 percent are likely to be uncollectible. The company will also incur $16,600 in additional collection expense. Production and marketing costs represent 75 percent of sales. The firm is in a 35 percent tax bracket. No other asset bulidup will be required to service the new customers. The firm has a 12 percent desired return. Assume the average collection period is 120 days. a. Compute the return on incremental investment. Note: Input your answer as a percent rounded to 2 decimal places. Use a 360 -day year

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