Truworths Ltd is considering relaxing its credit terms from the existing net 70 to 2/60 net 90 in hopes of securing new sales. The following information should aid you in the analysis of this problem: New sales level (all credit) $8 000 000 Original sales level (all credit) $7 000 000 Contribution margin 25% Percentage bad debt losses on new sales 8% New average collection period 75 days Original average collection period 60 days Additional investment in inventory $50 000 Pre-tax required rate of return 15% Percent of customers taking cash discount 50% Should Truworths proceed with the change?