Question 1 10 points - A company has annual sales of 5.4 million and a 10% cost of capital 70% of these sales are on credit and the remainder aro cash salos. The company is considering whether to avail of a factoring service to improve its management of debtors. It has estimated that if debtor management is entirely outsourced to the factor, the level of trade receivables will decrease by 800,000. The factor will charge a fee of 2% of any sales it takes over from the company What is the net annual effect on the profit and loss account if the company outsources debtor management to the factor? Net cost of 28.000 Net cost of 75,600 Nel benefit of 64.400 Netcost of 100,000