Question 4 Exeter plc decides to offer a 2.5% early settlement discount to its clients. It's expected that half of all clients will take up the offer and be incentivised to pay in one month instead of the usual two. Exeter plc pays 8% p.a. for funds tied up in the working capital. What would be the most likely impact of the 2.5% early settlement discount on the cash conversion cycle (CCC) and the reported profit (RP)? ABCDE The length of CCC will increase; the RP will increase The length of CCC will decrease; the RP will not be affected The length of CCC will increase; the RP will decrease The length of CCC will decrease; the RP will decrease The length of CCC will increase; the RP will not be affected 1