Nike is considering changing its credit terms from $$net $30$ to $1/10,$ net $40$ in its Southwestern Arizona sales territory. The company expects sales $($all on credit$)$ to increase by $10\%$ from a current level of $5$ million, and it expects its average collection period to decrease from $44$ days to $39$ days. The bad$-$debt ratio should decline to $3\%$ of sales from a current level of $4\%$ of sales. The company also estimates that $30\%$ of its customers will take advantage of the cash discount. The company estimates that inventory investment would increase by $$200,000$ for the expected sales increase. The company$$s variable cost ratio is $0\mathrm{.}45.$ Nike$$s required pretax rate of return on investments in receivables and inventories is $18\%.$ Should Nike proceed with the change from the perspective of pretax profits?