Discount Policy. Stevens Company presents the following information: Current annual credit sales:         $24,000,000 Collection period:                            3 months Terms:...

Discount Policy. Stevens Company presents the following information:

Current annual credit sales:         $24,000,000

Collection period:                            3 months

Terms:                                                  net/30

Rate of return:                                  18%

The company is considering offering a 4/10, net/30 discount. It anticipates that 30 percent of its customers will take advantage of the discount. The collection period is expected to decrease to 2 months. Should the discount policy be implemented?