B. Mirza Sdn Bhd is having cash flow problems due to current economic condition. The company plans to factor RM140,000 of its accounts receivable to a factoring firm, saving RM600 per month

We can write your essays! Let our essay writing experts help you get that A in your next essay. Place your order today, and you will enjoy it. No plagiarism.


Order a Similar Paper Order a Different Paper

B.            Mirza Sdn Bhd is having cash flow problems due to current economic condition. The company plans to factor RM140,000 of its accounts receivable to a factoring firm, saving RM600 per month in administrative costs. Any advance will be subject to a 12% annual interest rate, as well as a 10% reserve and a 2.5% processing fee from the factoring company. The payment period given to the company is 90 days. Assume a 360-day in a year.

Required:

Assuming the factor agrees to give the maximum advance to the company, calculate the effective annual rate of interest to Mirza Sdn Bhd on the factoring arrangement.

Writerbay.net

Everyone needs a little help with academic work from time to time. Hire the best essay writing professionals working for us today!

Get a 15% discount for your first order


Order a Similar Paper Order a Different Paper