Annual sale on net 30 credit term is Rs 20,00,000. The firm introduces a discount of 2% if payment is made within 10 days. The opportunity cost of capital is 20%. Find out the average size of...

Annual sale on net 30 credit term is Rs 20,00,000. The firm introduces a discount of 2% if payment is made within 10 days. The opportunity cost of capital is 20%. Find out the average size of receivables and thereby the saving in the financing cost if 20% of the customers do not pay within 30 days and 70% of the customers avail of the discount.