**60 .Simmer Co has annual credit sales of $4,500,000 and on average customers take 60 days to pay, assuming a 360-day year. As a result, Simmer Co has a trade receivables balance of $750,000. The company relies on an overdraft to finance this at an annual interest rate of 10%.**

Simmer Co is considering offering an early settlement discount of 1% for payment in 30 days. It expected that 25% of its customers (representing 35% of the annual credit sales figure) will pay in 30 days in order to obtain the discount.

If Simmer Co introduces the proposed discount, what will be the **NET** impact?