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Fast Turnstiles Co. is evaluating the extension of credit to a new group of customers. Although these customers will provide 5504,000 in additional credit sales, 13 percent are likely to be uncollectible The company will also incur $17.900 in additional collection expense Production and marketing costs represent 70 percent of sales. The firm is in a 35 percent tax bracket and has a receivables turnover of five times. No other asset bulldup will be required to service the new customers. The firm has a 8 percent desired return 0-1. Calculate the incremental income after taxes. Incremental income after tases -2. Calculate the return on incremental investment (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % b-1. Calculate the incremental income after taxes if 16 percent of the new sales prove to be uncollectible. Incremental income after taxes b-2. Calculate the return on incremental investment if 16 percent of the new sales prove to be uncoilectible (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment % C-1. Calculate the return on incremental investment if the receivables turnover drops to 16 and 13 percent of the accounts are uncollectible (Input your answer as a percent rounded to 2 decimal places.) Return on incremental investment %

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