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Unnati ltd has current sales of Rs 2 0 0 0 0 0 0 . The company is planning to introduce cash discount policy of

Unnati ltd has current sales of Rs 2000000. The company is planning to introduce cash discount policy of 2/10 net 30. And as a result, company management is expecting a average collection period to go down by 10 days and 80% sales opt for cash discount facility. If the company's required rate of return in receivables is 20%. Should it introduce the new discount policy using Total Approach ? Assume 360 days in a year.

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