Question
A firm sells its $1,130,000 receivables to a factor firm that specializes in collecting receivables for $1,025,000. The average collection period is 2 months. What
A firm sells its $1,130,000 receivables to a factor firm that specializes in collecting receivables for $1,025,000. The average collection period is 2 months. What is the effective annual rate on this arrangement? (Round your answer to 2 decimal places.)
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Commodity Trade And Finance
Authors: Michael Tamvakis
2nd Edition
041573245X, 978-0415732451
