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Nakatomi Toyota. Nakatomi Toyota buys its cars from Toyota Motors (U S), and sells them to U S customers. One of its customers is EcoHire,
Nakatomi Toyota. Nakatomi Toyota buys its cars from Toyota Motors (U S), and sells them to U S customers. One of its customers is EcoHire, a car rental firm that buys cars from Nakatomi Toyota at a wholesale price. Final payment is due to Nakatomi Toyota in seven months. EcoHire has bought $203,000 worth of cars from Nakatomi, with a cash down payment of $40,600 and the balance due in seven months without any interest charged as a sales incentive. Nakatomi Toyota will have the EcoHire receivable accepted by Alliance Acceptance for a 2.1% fee, and then sell it at a 2.7% per annum discount to Wells Fargo Bank a. What is the annualized percentage all-in cost to Nakatomi Toyota? b. What are Nakatomi's net cash proceeds, including the cash down payment? (NOTE Assume a 360-day year.)
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