b. A bad-debt expense of 1 percent on credit sales The firm's bank has recently offered to lend the firm up to 80 percent of the face value of the receivables shown on the schedule of accounts. The bank would charge 15 percent per annum interest plus a 2 percent monthly processing charge per dollar of receivables lending. The firm extends terms of net 30, and all customers who pay their bills do so in 30 days. Should the firm discontinue its factoring arrangement in favor of the bank's offer if the firm borrows, on the average, $100,000 per month on its receivables?