I need an answer to this question

PART B (25 Marks) Boere-Business (Pty) Ltd (BB) sells small agricultural appliances to farming Co-op's throughout South Africa. The financial manager of the company is thinking about changing the credit policies offered by the firm in order to attract customers away from competitors. The current policy calls for a 1/10, net 30, and the new policy would call for a 3/10, net 50. Currently 40% of BB customers are taking the discount, and it is anticipated that this number would go up to 50% with the new discount policy. With the exception of bad debts, the balance of the debtors comply with the credit terms. Bad debts at present amount to 2% of total sales and this is not expected to change with the new credit policy. It is further anticipated that annual sales would increase from a level of R20m to R25m as a result of the change in the cash discount policy. The increased sales would also affect the inventory level carried by BB. The average inventory carried by BB is based on a determination of an EOQ. Unit sales of small appliances will increase from 20 000 to 25 000 units. The ordering cost for each order is R10 000 and the carrying cost per unit is R100 (these values will not change with the discount). The company does not hold any buffer inventory. Each unit in inventory has an average cost of R650. Cost of goods sold is equal to 65% of sales, other variable expenses are equal to 10% of sales, and the increase in the accounts receivable has an opportunity cost of 12% per year. REQUIRED a) Based on the information above, calculate whether the new cash discount policy should be utilised or not. (20) b) List the additional factors which management should consider before changing the cash discount policy