Trust Chemicals Is Considering Changing Its Credit Policy

Multiple Choice

Trust Chemicals is considering changing its credit policy. It conducted a net present value (NPV) analysis for both its existing credit policy and proposed credit policy. The net change in NPV on a daily basis is $20 and the expected return is 10%. Assuming there are 360 days in a year, the increase in the firm's value is _____.

A) $50,000
B) $72,000
C) $43,000
D) $20,000
E) $67,000