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The Jazz Supply Company has just acquired a large account and needs to increase its working capital by P100,000. The controller of the company has
The Jazz Supply Company has just acquired a large account and needs to increase its working capital by P100,000. The controller of the company has identified the four sources of funds given below. 1. Pay a factor to buy the company's receivables, which average P125,000 per month and have an average collection period of 30 days. The factor will advance up to 80% of the face value of receivables at 10% and charge a fee of 2% on all receivables purchased. The controller estimates that the firm wou
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