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A firm currently makes all sales on credit for up to 3 0 days and offers no cash discount. The unit variable cost and selling

A firm currently makes all sales on credit for up to 30 days and offers no cash discount. The unit variable cost and selling price are INR 15 and INR 25. The management is considering a four-percent cash discount for payment within ten days. The sales are expected to increase by 25% from the current 2,00,000 units, and the average collection period will fall from 25 days to 20 days as fifty percent of sales are expected to avail a discount and pay by day ten. Should the proposed discount be offered, assuming no change in the working capital requirement, no bad sales, and zero-tax?
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