Louis International Is Considering Easing Credit Standards to Increase Sales,and

Louis International is considering easing credit standards to increase sales,and potentially profits.Currently the firm sells 200,000 units at a sales price of $125 per unit and variable cost of $103 per unit.Currently the average collection period is 15 days and the bad debt expense is 3% of sales.The required return on investment is 18%.If credit standards are eased,the sales will increase to 250,000 units; the ACP will increase to 35 days; and the bad debt expense will increase to 5% All else will remain the same.What is the new investment in investment in accounts receivable?

A) $493,835.62
B) $2,996,575.34
C) $1,975,342.47
D) $2,469,178.08