The Petaling Bottling Company will generate $14 million in credit sales next year.

Collection of these credit sales will occur evenly over this period.

The firm’s employees work 270 days a year. Currently, the firm’s processing system ties up 5 days’ worth of remittances checks. A recent report from a financial consultant indicated procedures that will enable Petaling Bottling Company to reduce processing float by 2 full days. If Petaling invests the released funds to earn 7 percent, what will be the annual savings?