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Indian Motorcycles exports large - engine motorcycles ( greater than 7 0 0 cc ) to Australia and invoices its customers in U . S
Indian Motorcycles exports largeengine motorcycles greater than cc to Australia and invoices its customers in US dollars. Sydney Wholesale Imports has purchased $ of merchandise from Indian Motorcycles, with payment due in months. The payment will be made with a bankers acceptance issued by Charter Bank of Sydney at a fee of per annum. Indian Motorcycles has a weighted average cost of capital of The exporter has two options: First, it may hold the acceptance till maturity. The Annualized allincost as per this option is Alternatively, it may sell the acceptance to Bank of America for a discount of per annum. The Annualized allincost as per the second option is
Indian Motorcycles exports largeengine motorcycles greater than cc to Australia and invoices its customers in US dollars. Sydney Wholesale Imports has purchased $ of merchandise from Indian Motorcycles, with payment due in months.
The payment will be made with a bankers acceptance issued by Charter Bank of Sydney at a fee of per annum. Indian Motorcycles has a weighted average cost of capital of
The exporter has two options:
First, it may hold the acceptance till maturity. The Annualized allincost as per this option is
Alternatively, it may sell the acceptance to Bank of America for a discount of per annum. The Annualized allincost as per the second option is
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