Factoring: BML Ltd., sells R150000 of its accounts receivable to factoring company XYZ. XYZ charges a commision

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Factoring: BML Ltd., sells R150000 of its accounts receivable to factoring company XYZ. XYZ charges a commision of 2.875%, an annual interest rate on advances of 12% per annum, and requires a 10% reserve. BML Ltd's average collection period is 75 days. What amount of funding from XYZ will be available for advance? (round to the nearest rand) R150000 R145688 R130688 R127465

Posted Date: May 18, 2024 11:12 AM

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Factoring: BML Ltd., sells R150000 of its accounts receivable to factoring company XYZ. XYZ charges a commision

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