A company is due to receive a payment of 500,000 from a customer in 6 months'...
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A company is due to receive a payment of £500,000 from a customer in 6 months' time. To smooth its cash flows, the company would prefer to receive the payment immediately, and has agreed to transfer its entitlement to this payment to a third party (a discount house) in return for an immediate payment calculated using a rate of commercial discount of 16% per annum. How much will the immediate payment made by the discount house be? [4] A company is due to receive a payment of £500,000 from a customer in 6 months' time. To smooth its cash flows, the company would prefer to receive the payment immediately, and has agreed to transfer its entitlement to this payment to a third party (a discount house) in return for an immediate payment calculated using a rate of commercial discount of 16% per annum. How much will the immediate payment made by the discount house be? [4]
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Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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