A company is making sales of Rs 16,00,000 and it extends a credit of 90 days to its customers. However, in order to overcome the financial difficulties, it is considering to change the credit policy. The proposed term of credit and expected sales are given below The firm has a variable cost of 80% and fixed cost of Rs one lakh. The cost of capital is 15%. Evaluate the different proposed policies and which policy should be adopted. You may assume 360 days in one year