Rayna Star General trading LLC is considering a factoring agreement to enhance its cash flow position Emirates NBD is offering an import/export factoring for exporters in the UAE. Emirates NBD requires a 15% reserve for returns and allowances and charges a 2% factoring commission. The bank charges a 9% annual interest on the advances. The factoring arrangement will allow the company to eliminate its credit department and save about 6,500 dirhams a month in administrative and clerical costs. The factoring will also eliminate bad debt losses of 24,000 dirhams a month Rayna's average collection period is 60 days, and its average level of receivables is 6 million dirhams. Required? a. Compute the amount of usable funds of the company? (2 pts) b. What is the annual financing cost of the company if the factoring arrangement is recourse factoring? (2 pts) c. How much will be the annual financing cost of the company, if it chooses the non-recourse factoring contract? (2 pts) d. How much does the company save by factoring the account receivables? (1 pts)