Most of the sales of Power Sales (Pty) Ltd are on credit. About 85% of the sales were on credit in 2022. In 2021 about 90% of the sales were on credit. This reduction was due to the deterioration in the credit market. Management was forced to tighten credit extensions. In 2022 a larger-than-usual summer sale was held to try and stimulate sales and move stock. The management of David Whitehead (Pty) Ltd expects total sales to increase by 1.5% in real terms during the first year after acquisition and by a further 3% in real terms in the second year after acquisition. The management also plans on reducing credit sales to 80% of the total sales in the first year and to 75% thereafter

Asses the efficacy of the projection made by management