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 $5\%.$

Complete the following sentences.

Wallace institute the proposed policy change, because the existing policy provides a net present value of compared to the proposed policy, which provides a net present value of

Since this change is expected to have a permanent and continuing effect, this daily difference of will the value to the firm by

$\backslash$table$[[,$Existing Polic,Proposed Poli$],[$I$.$ General Credit Policy Information$],[$Credit terms,$\frac{2}{10}$ net $30,\frac{2}{10}$ net $30],[($Average collection period $($ACP$)$ for all customers,$44\mathrm{.}0$ days,$40\mathrm{.}0$ days$],[$ACP for customers who take the discount $(20\%,10\mathrm{.}0$ days,$10\mathrm{.}0$ days$],[$ACP for customers who forgo the discount $(80\%,52\mathrm{.}5$ days,$47\mathrm{.}5$ days$],[$II$.$ Annual Credit Sales and Costs $($ $ millitions$)],[$Amount paid by discount customers,$$367,$$$367$