Urgent pls

A firm has a total sales of 200 lakhs of which 80% is on credit. It is offering credit terms of 2/40, net 120. Of the total, 50% of customers avail of discount and the balance pay in 120 days. Past experience indicates that bad debt losses are around 1% of credit sales. The firm spends about 2,40,000 per annum to administer its credit sales. These are avoidable as a factor is prepared to buy the firm's receivables. He will charge 2% commission. He will pay advance against receivables the firm at an interest rate of 18% after withholding 10% as reserve. i. What is the effective cost of factoring? Consider year as 360 days. ii. If bank finance for working capital is available at 14% interest, should the firm avail of factoring service