Because of Recent increases in its outstanding A/R, Rehan Co. is considering tightening credit standards and increasing collection efforts. Sales are Rs. 2,000,000 a year, with accounts receivable averaging Rs.250,000. Management expects such a move to cause sales to decline by Rs. 300,000. However, it is believed that the new policy should enable the company to lower the average collection period to 36days from its current level of 45days. Investigation expenses should drop, but collection expenses should rise. Management estimates that the net effect of investigative and collection expenses is a Rs.10,000 increase in costs. Bad debts are currently 1.5% of sales, but the new policy is estimated to cut this to 1%. The company's sale to variable cost ratio is 200% to 170%. Management would like to make 25%, after taxes, on invested capital. The tax rate is 34%. Analyze the policy change. Use a 360 day year. Required: should company adopt new proposal