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(c)Suppose a FACTOR will buy an exporter's Receivables at 2% per month discount. In addition, the Factor will charge an extra 1.95 % fee for

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(c)Suppose a FACTOR will buy an exporter's Receivables at 2% per month discount. In addition, the Factor will charge an extra 1.95 % fee for nonrecourse financing. If the exporter decides to factor $2.5 million in 180-day receivables without recourse, how much will the exporter receive?. On an annualized basis, determine how much this transaction will cost the Factor

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