10. Bansali Textiles Limited has annual sales of *200 crore. It sells 80 per cent of its products on a 60-day credit. Its average collection period is 80 days. The company's bad debts, based on the past experience, could be estimated as 0.9 per cent of credit sales. The company's annual cost of administering credit sales is *0.75 crore. It is possible to avoid *0.20 crore of these costs if the company transfers credit administration to a factor. The factor will charge 1.75 per cent commission for his services. He can also extend advance against receivables to the company at an interest rate of 16.5 per cent after withholding 10 per cent as reserve. Should the company hire services of the factor?