Suppose that you currently work with a team of credit analyst interns at a bank that is

reviewing a renewal application for an existing line of credit from a client, Keystone

Homes Co$.($Keystone$).$ Keystone builds simple modern production houses for first$-$time

and move$-$up homebuyers.

Keystone is currently using its maximum allowable amount of line of credit and is asking

for an additional amount, up to $$500,000,$ to manage its working capital needs. You

must decide if Keystone should be provided any additional amount or if the existing limit

should stay in place.