Tungsten Chemicals is considering changing its credit policy, so it conducted a net present value (NPV) analysis to compare the proposed credit policy with the existing credit policy. The results of the analysis shows that NPVProposed Policy- NPVExisting Policy = $20 per day. If Tungsten's required rate of return is 10 percent, what will be the change in the firm's value if the proposed credit policy is implemented? In you computations, use a 360-day year.

A. $200
B. $72,000
C. $25,920
D. $259,200
E. $7,200


Answer: B

Mathematics

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