Question: Rocket Rollers has variable cost per unit of $.37 per $1 of sales. The firm is considering offering a 2% discount for orders paid within

Rocket Rollers has variable cost per unit of $.37 per $1 of sales. The firm is considering offering a 2% discount for orders paid within 15 days if the customer increases their order size by 5%. Customers normally order $75,000 of goods and pay within 30 days (with no discount). Rocket's cost of financing is 12%. Would Rocket be wise to offer the discount? Calculate the NPV of the decision

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