Whiplash Inc. sells $73,000,000 of products to retailers on credit terms of net 30, and its ACP is 55 days. To speed up collection of A/R, the firm is considering changing credit terms to 2/10 net 30. Whiplash expects 40% of its customers to take the discount and for its ACP to decline to 35 days. If the firms required return on A/R is 15%, should they offer the discount?

Question options:

	1) No, the net expected benefit is ($3,599)
	2) No, the net expected benefit is ($294)
	3) Yes, the net expected benefit is $28,000
	4) Yes, the net expected benefit is $16,000