8.2 Fruit of the Loom, Inc. sells $10 million in accounts receivable to a factor. The receivables are due in 90 days. The factor charges a 2 percent per month factoring fee, as well as the face amount, for purchasing the accounts receivable from Fruit of the Loom on a nonrecourse basis. a. How much will Fruit of the Loom receive for its receivables? b. What is the all-in cost of the acceptance?
Solution ID:10137815 | Question answered on 16-Oct-2016
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