Alliasha-Toshiba. Alliasha-Toshiba buys its laptops from Toshiba-France, and sells them to French customers.

One of its customers is Pret-a-Print, a printing service firm that buys laptops from Alliasha-Toshiba at the wholesale price. Final payment is due to Alliasha-

Toshiba in three months. Pret-a-Print bought €175,000 worth of laptops from Alliasha-Toshiba, with a cash down payment of €35,000 and the balance due in 3 months without any interest charged as a sales incentive.

Alliasha-Toshiba will have the Pret-a-Print receivable accepted by Alliance Acceptance for a 3.5% fee and then sell it at a 5% per annum discount to BNP Paribas.

a. What is the annualized percentage all-in cost to Alliasha-Toshiba?

b. What are Alliasha-Toshiba’s net cash proceeds, including the cash down payment?