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Syarikat AliAhmad is in a shortage of cash to pay its expenses. The company has few invoices with a total value of RM1.5 million. The
Syarikat AliAhmad is in a shortage of cash to pay its expenses. The company has few invoices with a total value of RM1.5 million. The CFO suggests factoring its accounts receivables which still have 90days credit term. The factor charges a 1.5% fee, a 10% reserve and interest at 1% per month on advances. What is the maximum loan or advance that the firm can receive from the factor?
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International Financial Management
Authors: Cheol Eun, Bruce Resnick
4th Edition
0072996862, 9780072996869
