Please review then entire 6.16 problem then fully answer the REQUIRED section.

6.16 Achieving off-Balance-Sheet Financing. (Adapted from materials by R Dieter, D. Landsittel, J. Stewart, and A. Wyatt) Diviney Company wants to raise $50 million cash but for various reasons does not want to do so in a way that results in a newly recorded liability. The firm is sufficiently solvent and profitable, so its bank is willing to lend up to $50 million at the prime interest rate. Diviney's financial executives have devised six different plans, described in the following sections. TRANSFER OF RECEIVABLES WITH RECOURSE Diviney will transfer to Condon Company its long-term accounts receivable, which call for pay ments two years. Condon will pay an amount equal to the present value of the over the next receivables, minus an allowance for uncollectibles, as well as a discount because it is paying will collect cash later. Diviney must repurchase from Condon at face value repurchase ables that uncollectible in excess of the allowance. In addition, Divin may become 6.16 Achieving off-Balance-Sheet Financing. (Adapted from materials by R Dieter, D. Landsittel, J. Stewart, and A. Wyatt) Diviney Company wants to raise $50 million cash but for various reasons does not want to do so in a way that results in a newly recorded liability. The firm is sufficiently solvent and profitable, so its bank is willing to lend up to $50 million at the prime interest rate. Diviney's financial executives have devised six different plans, described in the following sections. TRANSFER OF RECEIVABLES WITH RECOURSE Diviney will transfer to Condon Company its long-term accounts receivable, which call for pay ments two years. Condon will pay an amount equal to the present value of the over the next receivables, minus an allowance for uncollectibles, as well as a discount because it is paying will collect cash later. Diviney must repurchase from Condon at face value repurchase ables that uncollectible in excess of the allowance. In addition, Divin may become