Help Svetu 5 Check my work 10 points Problem 7-20 Credit policy decision with changing variables (L07-4) Slow Roll Drum Co is evaluating the extension of credit to a new group of customers. Although these customers will provide $375,000 in additional credit sales, 15 percent are likely to be uncollectible. The company will also incur $12300 in additional collection expense Production and marketing costs represent 76 percent of sales. The firm is in a 30 percent tax bracket. No other asset buildup will be required to service the new customers. The firm has a 8 percent desired return. Assume the average collection period is 72 days o Compute the return on incremental investment input your answer as a percent rounded to 2 decimal places. Use a 360-dey Bow Hint year) Print Bences Return on incremental investment b. Should credit be extended to the new group of customers? Yes NO