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Use ule World II III ule laule Veluwu aliswer questois 1-6. Current Proposed Sales 1,000,000 0.02 % change in sales Cost of capital 0.075 0.075

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Use ule World II III ule laule Veluwu aliswer questois 1-6. Current Proposed Sales 1,000,000 0.02 % change in sales Cost of capital 0.075 0.075 Credit terms 30 0.05 70 0.09 Bad debt What is the net profit under the current policy?| What is change in sales if the company adopts the proposed policy? What is the change in the cost of receivables if the firm adopts the proposed policy? What is the change in the cost of bad debt if the firm adopts the proposed policy? What is the change in profit? Should the firm change its policy? Justify your answer. Use ule World II III ule laule Veluwu aliswer questois 1-6. Current Proposed Sales 1,000,000 0.02 % change in sales Cost of capital 0.075 0.075 Credit terms 30 0.05 70 0.09 Bad debt What is the net profit under the current policy?| What is change in sales if the company adopts the proposed policy? What is the change in the cost of receivables if the firm adopts the proposed policy? What is the change in the cost of bad debt if the firm adopts the proposed policy? What is the change in profit? Should the firm change its policy? Justify your

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