A firm has current sales of ₹ 2,56,48,750. It is considering the relaxation in its credit policy. The proposed terms of credit will be 60 days credit against the present policy of 45 days. As a result, the bad debts will increase from 1.5% to 2% of sales. The firm’s sales are expected to increase by 10%. Variable operating costs are 72% of sales. The firm’s corporate tax rate is 35%, and it requires an after-tax return of 15%. Should the firm change its credit period?Note: Yes calculates its debtor on sales.