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12. (Credit standards) A company is considering with- drawing credit from a group of customers who are not paying on time. These customers purchase $200,000 per year, pay in 120 days on average (assume ( a 360-day year), and default on 15% of their pur- chases. The company would save $15,000 in admin- istrative costs per year and could reduce its idle cash balance by $5,000 if it terminated these accounts. The company's variable costs average 60% of sales, it pays taxes at a 21% rate, and it has a 13 cost of capital. a. Calculate the incremental cash flows from accept- ing this proposal. b. Organize your cash flows from part a into a cash flow spreadsheet c. Calculate the proposal's NPV, IRR, and NAB. d. Should credit be withdrawn from these customers