Task 1. A company is considering changing its credit period from net 20 to net 40. The firm is currently producing a single product with variable costs of $10 and a selling price of $15. Additional annual credit sales of $10 million from new customers are forecasted, in addition to the current $200 million in annual credit sales. The before-tax opportunity cost for each dollar of funds tied-up in additional receivables is 10%. Should the company accept a new credit policy (all customers will pay according to net XX)?