2. L M Company has sales of 250 crore. Its current collection period is 30 days. It...

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2. L M Company has sales of 250 crore. Its current collection period is 30 days. It is thinking of extending the collection period to 40 days. The sales are likely to increase by 20 per cent. The company's contribution ratio is 30 per cent. The required rate of return is 12 per cent. Should the company change its collection period?

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