22 Credit Policy Evaluation Champions SA is considering a change in its cash-only sales policy. The new terms of sale would be net one month. Based on the following information, determine if Champions should proceed. Describe the build-up of receivables in this case. The required return is 1.5 per cent per month.

Current Policy New Policy Price per unit €800 €800 Cost per unit €475 €475 Unit sales per month 1,130 1,195