A firm is currently selling a product @ Rs 10 per unit. The most recent annual sales (all credit) were 30,000 units. The variable cost per unit is Rs .6 and the average cost per unit, given a sales volume of 30,000 units, is Rs 8. The total fixed cost is Rs 60,000. The average collection period may be assumed to be 30 days. The firm is contemplating a relaxation of credit standards that is expected to result in a 15 per cent increase in units sales; the average collection period would increase to 45 days with no change in bad debt expenses. It is also expected that increased sales will result in additional net working capital to the extent of Rs 10,000. The increase in collection expenses may be assumed to be negligible. The required return on investment is 15 per cent. Should the firm relax the credit standard?