Exercise $5-15($Algo$)$ Cash discounts$$ROI L$.$O $5-5$

Annual credit sales of Nadak Company total $$320\mathrm{.}3$ million. The firm gives a $2\mathrm{.}25\%$ cash discount for payment within $10$ days of the invoice date; $80\%$ of Nadak's accounts receivable are paid within the discount period.

Required:

What is the total amount of cash discounts allowed in a year?

Calculate the approximate annual rate of return on investment that Nadak Company$$s cash discount terms represent to customers who take the discount. $($Assume a credit period of $30$ days and $360-$days year$).$