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Motoguzzie (B). Motoguzzie exports large-engine motorcycles (greater than 700cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $3,040,000 of
Motoguzzie (B). Motoguzzie exports large-engine motorcycles (greater than 700cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $3,040,000 of merchandise from Motoguzzie, with payment due in five months. The payment will be made with a bankers' acceptance issued by Charter Bank of Sydney at a fee of 1.76% per annum. Motoguzzie has a weighted average cost of capital of 9%. Bank of America is willing to buy Motoguzzie's bankers' acceptance for a discount of 5.8% per annum. What would be Motoguzzie's annualized percentage all-in cost of financing its $3,040,000 Australian receivable? (NOTE: Assume a 360-day year.) The bankers' acceptance fee is $ (Round to the nearest cent.) The discount on the sale of acceptance is S (Round to the nearest cent.) Calculate the amount received by Motoguzzie below: (Round to the nearest cent.) Bankers' Acceptance Face amount of bankers' acceptance $ $ Less acceptance fee for 5-month maturity Less discount on sale of acceptance $ Amount received $ The annualized percentage all-in cost (AIC) is %. (Round to three decimal places.)
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