23 Evaluating Credit Policy Bruce Jacks plc is in the process of considering a change in its terms of sale.

The current policy is cash only; the new policy will involve one period’s credit. Sales are 70,000 units per period at a price of £530 per unit. If credit is offered, the new price will be £552. Unit sales are not expected to change, and all customers are expected to take the credit. Bruce Jacks estimates that 2 per cent of credit sales will be uncollectible. If the required return is 2 per cent per period, is the change a good idea?