A company is thinking about changing its credit policy to speed up its cash collections. The present policy calls for a 2/10, net 30 cash discount. The new policy would call for a 4/10, net 50 cash discount Currently, 39% of its customers are taking the discount, and it is anticipated that this number would go up to 53% with the new discount policy. It is further anticipated that annual sales would increase from a level of $447k to $657k as a result of the change in the cash discount policy. The average inventory carried by the firm is based on an economic order quantity (EOQ). Assume that unit sales increase from 16 to 22.9k. The ordering cost per order is $197 and the carrying cost per unit is $1.99 (these values will not change with the fulfillment of the new discount policy). Each unit in inventory has an average cost of $11. The cost of goods sold equates to 60% of net sales, general and administrative expenses represent 16% of net sales and Interest payments of 14% will only be necessary for the increase in the accounts recevable and inventory balances. The firm is in a 39% tax bracket. Required: Calculate the percentage change in earnings after taxes (EAT) between the current discount policy and the new discount policy. Use a 360-day year. Note: The term "k" is used to represent thousands (* $1,000), Further Information: By the end of this problem, you are required to establish the percentage difference in EAT between the old policy (le, before the proposed discount) and the new policy e after the proposed discount). In other words: 964 EAT = (EATH-EATod) + EATold