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14.Garcia Company hasnual credit sales=$10 million Average collection period=60 days. Terms:Net 30. Interest rate=10%. The Garcia company proposes to offer discount policy of 2/10, net
14.Garcia Company hasnual credit sales=$10 million Average collection period=60 days. Terms:Net 30. Interest rate=10%. The Garcia company proposes to offer discount policy of 2/10, net 30. There will be 50% of its customers will take advantage of this new policy. As a result, the collection period will be reduced to 30 days. Should the Garcia Company offer the new credit terms? (6 Points)
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