Blake Corporation has $200,000 in accounts receivable that will be collected within 80 days.Since Blake needs cash immediately, it has decided to factor them and has received$185,000.Everest Factoring Company, which took the receivables, could collect only $195,000 after100 days.Find the rate of return on this investment for Everest.

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Answered: Blake Corporation has $200,000 in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 2P

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