Problem $7-20($Algo$)$ Credit policy decision with changing variables $[$LO$7-4]$

Slow Roll Drum Company is evaluating the extension of credit to a new group of customers. Although these customers will provide $$432,000$ in additional credit sales, $9$ percent are likely to be uncollectible. The company will also incur $$17,500$ in additional collection expense. Production and marketing costs represent $77$ percent of sales. The firm is in a $35$ percent tax bracket. No other asset buildup will be required to service the new customers. The firm has a $12$ percent desired return. Assume the average collection period is $180$ 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.

Return on incremental investment

$\%$