b. Company KPC has an average trade receivables of $750,000 and annual sales of $1.45 million. It is considering the use of factoring given that this would result in a reduction in credit control costs of $70,000 per annum. The factoring house charges a fee of 1.3% of sales. It will provide an advance to the company of 85% of its receivables and will charge interest on this advance of 7 % per annum. Required:Assess whether it is financially beneficial for company KPC to enter into this factoring arrangement