the company is considering offering a 2% cash discount for payment within 15 days. The co. current avg. collection pd. is 60 days, sales 40,000 units, selling price is 45 per unit, and variable cost per unit is 36. The co. expects that the change in credit terms will result in an increase in sales to 42,000 units, that 70% of the sales will take the discount, and that the avg. collection period will fall to 30 days. If the com. required rate of return on equal-risk investments is 25%, should the proposed discount be offered. (Assume a 365-day year.

I can't even begin to get started with this. The text does not break it down enough. I have tried to find information on the internet, anything that would help me.:confused: