$(4.)$ ABC Textiles Limited has annual sales of $2,00$ crore. It sells $80$ per cent of its products on a $60-$day credit. Its average collection period is $80$ day'. The company's bad debts, based on the past experience. could be estimated as $0\mathrm{.}9$ per cent of credit salc. The company's annual cost of administering credit sales is $0\mathrm{.}75$ crore. It is possible to avoid $0\mathrm{.}20$ crore of these costs if the company transfers credit administration to a factor. The factor will char e $1\mathrm{.}75$ per cent commission for his services. He can alse extend advance atgainst receivables to the company at anterest rate of $16\mathrm{.}5$ per cent after withholdin $10$ per cent as reserve. Should the company hir services of the factor?