Garments Inc. receives payment on average 180 days after a sale is made. Its average accounts receivables

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Garments Inc. receives payment on average 180 days after a sale is made. Its average accounts receivables is $10 million. Should the company sell its receivables to a factor at a discount of 10% if its cost of capital is 18% per year?

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Financial Accounting

ISBN: 978-0078025556

8th edition

Authors: Robert Libby, Patricia Libby, Daniel Short

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Posted Date: Apr 28, 2023 08:43 AM

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Garments Inc. receives payment on average 180 days after a sale is made. Its average accounts receivables

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Financial Accounting

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