Lamyee Enterprises is considering relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase by 10 percent from 10,000 to 11,000 units during the coming year; the average collection period is expected to increase from 45 to 60 days; and bad debts are expected to increase from 1 percent to 3 percent of sales. The sale price per unit is US$40, and the variable cost per unit is US$31. The firm's required return on equal risk investments is 25 percent. Evaluate the proposed relaxation, and make a recommendation to the firm.