1. Does your analysis up to this point consider the risks involved with a credit policy change? If not, how could risk be assessed and incorporated into the analysis?
2. Suppose the firm makes the change to 3/COD, net 25, but Lifelines' competitors react by making similar changes in their terms. The net result is that Lifelines' gross sales remain at the current levels. If Lisa's remaining assumptions were correct, what would be the impact on Lifelines' profitability?