The new credit manager of Kays departmet European History

The new credit manager of Kays departmet store plans to liberalize the firms credit policy. The firm currently generates credit sales of $575,000 annually. the more lenient credit policy is expected to produce credit sales of $750,000. The bad debt losses on additional sales are projected to be 5% despite an additional $15,000 collection expenditure. The new manager anticipates production and selling costs other than additional bad debt and collection expenses will remain at the 85% level. The firm is in 34% tax bracketb-what would be kays incremental after-tax return on investment?

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