Taylor Company provides the following information:

Annual credit sales : $ 24,000,000

Collection period : 3 months

Terms : net/30

Rate of return : 18%

The company is considering changing the credit discount policy to 4/10, net 30. The company anticipates that thirty percent of consumers will take the discount. The receivable collection period is expected to be reduced to 2 months. Should the discount policy be implemented? Explain with calculations.