A firm's annual sales revenue is 300 million lira. 6. Current credit policy of the firm: Current credit period is 45 days. 10% of the customers pay cash and take 490 cash discount, 80% of the customers pay on 45th day, and 10% of the customers pay on 60th day. The firm's cost ratio (excluding depreciation) is 70%. Credit analysis and collection expenses are 4 million lira. Bad debt losses are expected to be 7 million lira. The firm is considering a new credit policy. Proposed credit policy of the firm: Credit period will be 60 days. Annual sales are expected to be 370 million lira. New cash discount is 6%. It is expected that 20% of the customers pay cash and take the discount. It is expected that 60% of the customers pay on 60th day, 20% of the customers pay on 90th day. The firm's cost ratio (excluding depreciation) is again 70%. Credit analysis and collection expenses are expected to be 2 million lira. Bad debt losses are expected to be12 million lira. Firm's cost of capital is 16 %. Analyze two credit policies. Which one do you choose? Why