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 bracket
b-what would be kays incremental after-tax return on investment?