c) The Two River Company is considering the Liberalization of its credit terms and credit standards in order to increase sales and, hopefully, profits. The adhoc management team charged with evaluating this credit Liberalization has gathered the information shown below. Annual sales Collections period Bad debts/sales Cost of goods sold/sales Annual required return Current policy Kshs. 10 million 36 days 11% Proposed policy Kshs. 11 million 40 days 2% 85% 15% 85% 15% Required: Which policy is more profitable to the Two rivers Company. (10 marks)