A firm is considering relaxing its credit standards which will result in annual sales increasing from $1.50 million to $2.11 million.

1.A firm is considering relaxing its credit standards which will result in annual sales increasing from $1.50 million to $2.11 million. Costs of goods sold represent 48 percent of sales and the average collection period is expected to increase from 40 to 53 days. If the firm requires a return of 13.3 percent, what the cost of investing in the extra accounts receivables from the planned relaxation of credit standards?