Lory Corporation Has Variable Costs Per Unit of

Lory Corporation has variable costs per unit of $.35 per $1 of sales. The firm offers a 2% discount for orders paid within 15 days if the customer increases their order size by 5%. A customer normally orders $75,000,and is considering the discount. Normally,the customer pays within 30 days with no discount. Lory 's cost of debt capital is 12%. Would Lory be wise to offer the discount?
Calculate the NPV of the decision.

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Arithmetic method:
Current Policy: PV = ...

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