The proposed data, including the daily data, is reflected in the following table. Existing Policy Proposed Policy I. General Credit Policy Information Credit terms 2/10 net 30 2/10 net 30 (Average collection period (ACP) for all customers 46.0 days 37.0 days ACP for customers who take the discount (10%) 10.0 days 10.0 days ACP for customers who forgo the discount (90%) 50.0 days 40.0 days II. Annual Credit Sales and Costs ($ milllions) Amount paid by discount customers $189 $189 Amount paid by nondiscount customers $1,440 $1,360 Net credit sales $1,629 $1,549 Variable operating costs (82% of net sales) $1,336 $1,270 Bad debts $0.0 $0.0 Credit evaluation and collection costs $160 $170.00 III. Daily Credit Sales and Costs ($ thousands) Net sales $4,525 $4,303 Amount paid by discount customers $525 $525 Amount paid by nondiscount customers $4,000 $3,778 Variable operating costs (82% of net sales) $3,711 $3,528 Credit evaluation and collection costs $444 $472 Your job is to review the proposal and make a recommendation. To simplify your analysis, assume that sales occur evenly throughout the year, that the variable operating costs and the credit evaluation and collection costs are incurred at the time of sale, and that a 360-day year is used to compute the daily figures. Wallace's cost of capital is 7.5%. Complete the following sentences. Wallace institute the proposed policy change, because the existing policy provides a net present value of the proposed policy, which provides a net present value of compared to Since this change is expected to have a permanent and continuing effect, this daily difference of will the value to the firm by