1. Currently, Jasmine, the owner of a computer shop is considering whether to offer a 2% early settlement discount for her clients and this early settlement discount is expected to reduce the account receivable collection period from 45 days to 20 days. If Jasmine offer this early settlement discount, she plans to invest the money that she collected from the clients under this early settlement discount in an investment plan that could provide an annual expected return of 25%. Calculate the Effective Annual Rate (EAR) of the new early settlement discount and suggest to Jasmine whether to introduce this new early settlement discount or not. Assumed 365 days per year. 15 Marks