What credit decision is appropriate for a potential customer that offers an 80 percent chance of paying in one month on a $2,000 sale that has a present value of cost of $1,600 when the monthly interest rate is 1 percent?

• A) Refuse credit since expected loss is $16
• B) Refuse credit since expected profit is zero
• C) Refuse credit since expected loss is $400
• D) Grant credit since expected profit is $400
• E) Grant credit since expected profit is $317