The wholesale factory Corona Mask, is considering whether collection policies should be more strict. At present it is selling 144,000 units at Rs 32 per unit.

Bad debts expenses are 3%, and collection expenses are Rs 40,000; the average collection period is 58 days.

The band average per unit costs are Rs 25 and Rs 29 respectively.

With additional collection charges of Rs 30,000, it is expected that bad debt will be only 1%, and the average collection period will be 40 days.

Due to the rigorous collection policy, sales are expected to decline by 2,000 units. If the required rate of return is 20%, what would you recommend the company from a prudential financial perspective?