EFU Group is considering changing its credit period from net 45 (which has resulted in 8 A/R Turns per year) to net 60 (which is expected to result in 6 A/R Turns per year).

EFU Group is currently producing a single product with variable costs of $150 and a selling price of $180. Additional annual credit sales of $180,000 from new customers are forecasted, in addition to the current $1.5 million in annual credit sales.

The before-tax opportunity cost for each dollar of funds tied-up in additional receivables is 30%. Ignoring any additional bad-debt losses that may arise, should EFU Group relax their credit period?