Dineo, a credit manager, has been asked to investigate a proposed change of her company's credit terms. Dineo believes that by increasing the credit period from 30 to 45 days, the company's sales will increase significantly. She estimates that with this credit change, annual sales will increase from the current level of R2 500 000 to R3 500 000. The new customers are expected to increase by 80% and the existing customers are expected to increase by 20%. Further, Dineo's estimates indicate that with the extended credit period, the company's average collection period will increase from 45 to 60 days. In addition, bad debts are expected to increase from the current level of 2% to 3 5% of sales. The company's variable costs amount to 65% of sales. The company requires a 15% opportunity cost on its accounts receivable (Assume 365-day year). Required Calculate the increase in the company's average investment in accounts receivable