Uncle Ray's Catering is a small food catering business with annual sales of $2.2 million, all of which on credit terms of "net 30." Currently, Uncle Ray's average collection period is 35 days. Uncle Ray is considering offering a 7% discount to customers who choose to pay with cash the same day. The firm expects 50 percent of its customers to take the discount and its average collection period to decline to 15 days. Uncle Ray's required pretax return on receivables investment is 18%. What is the net effect of offering this cash discount on Uncle Ray's pretax profit? Do you think Uncle Ray should offer such discount? [10 points)