Karabo Business Consultants (KBC) asks its credit customers to pay by the end of the month after the month of delivery in % practise, customers take longer to pay - on average 70 days. Sales revenue amounts to R15 000 000 per year and bad debts to R500 000 per year. It is planned to offer customers a cash discount of 2% for payment within 30 days KBC estimates that 50% of customers will accept this facility but that the rest will still only pay at 70 days after sales. At present the company has an overdraft facility at an interest rate of 16% a year. If the plan goes ahead bad debt will be reduced to R300 000 per year and saving in credit management of R150 000 per year. It is also determined that the Reduction in Trade Receivables is R82 1917.80 Should KBC offer the new credit terms to customers. R R. Cost of discount [300000] Less Interest saved on reduction in Trade Receivables [131506.8] Administration cost saving (150000] Cost of bad debts saved [200000] [481507] Net cost of policy [-181507] State if policy is a GOOD or BAD decision [BAD] decision