TW Bhd specifies payment from its customers at the end of the month following delivery. On average, customers take 70 days to pay. Sales total RM8 million per year and bad debts total RM40,000 per year. The company plans to offer cash discounts for payment within 30 days. It is estimated that 50 percent of customers will take up the discount, but that the remaining customers will take 80 days to pay. The company has a short-term facility costing 13% per annum. If the proposed scheme is introduced, bad debts will fall to RM20,000 and savings in credit administration of RM12,000 per annum as expected. Should the company offer the new credit terms?