HiLife Ltd., is concerned about managing its cash efficiently. HiLife's annual sales amount to $30 million and its COGS is $20 million. All sales are on credit as are all purchases. On average, its inventories have an age of 90 days, its Accounts Receivables are collected in 60 days and Accounts Payables are paid 30 days after they arise. There is no change to HiLife's level of inventory at the start and end of the year. As an alternative, one of the finance team has suggested that offering a cash discount to customers might be a good incentive to encourage prompt payment and has suggested that 5/10 net 55 EOM might be an appropriate level. Calculate the implied cost of credit of this proposal and comment on its likely acceptability to HiLife