Daima Company Ltd has current sales of Kshs 3Million. The company is considering a liberal credit policy to improve its sales. The current average collection period of the company is 25 days. If the collection period is extended, sales increase as shown below.

Credit policy	Increase in collection period	Increase in sales Kshs “000”
A	15 days	12
B	25 days	27
C	35 days	47

The company is selling its product at Kshs 10 each. Average cost per unit at the current level is Kshs 8 and the variable cost per unit is Kshs 6. Assume a 360-day year.

Required

If the company required a return of 12% on its investment, which credit policy would you advise?

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2. Determine the particular solutions of the following differential equations: (D3-4D)y=0; y(0)= 3, y(0)= -1 3. Determine the general solutions of the following differential equations: (4D4-4D³-3D2-2D +1)y=D. 4. Determine the particular solutions of the following differential equations: (D3 + D2-D-1)y=D0; y(0) = 1,y'(2)= 0,as x - 00, y 0o. 2. Determine the particular solutions of the following differential equations: (D3-4D)y=0; y(0)= 3, y(0)= -1 3. Determine the general solutions of the following differential equations: (4D4-4D³-3D2-2D +1)y=D. 4. Determine the particular solutions of the following differential equations: (D3 + D2-D-1)y=D0; y(0) = 1,y'(2)= 0,as x - 00, y 0o.

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