The annual sales revenue of a company is 300 million lira. The cost of capital is %10. Current Credit Policy: Current credit period is 30 days. %10 of the customers pay cash and take %4 cash discount. 80% of the customers pay on the 30th day and %10 of the customers pay on 45th day. The firm's cost ratio (excluding depreciation) is 50%. Credit analysis and collection expenses are 4 million lira. Bad debt losses are 6 million lira. The company is considering a new credit policy given below. Propsed Credit Policy: Credit period will be 45 days. Annual sales are expected to be 360 million lira. New cash discount is %5. It is expected that %20 of the customers pay cash and take the discount. It is expected that %50 of the customers pay on the 45th day, %30 of the customers pay on 60th day. The firm's cost ratio (excluding depreciation) is again 50%. Credit analysis and collection expenses are expected to be 2 million lira. Bad debt losses will be 8 million lira. a) Analyze two credit policies. (16 pts) b) Which credit policy would you choose? Why? Explain. (4 pts)