Brightstar Funding pays $110,000 for a receivable. After 45 days, they collect$114,000.What is the rate of return on this factoring investment?

To calculate the rate of return on the factoring investment, we use the formula: Rate of…

Answered: Brightstar Funding pays $110,000 for a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3EA: If a copy center is considering the purchase of a new copy machine with an initial investment cost...

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Brightstar Funding pays $110,000 for a receivable. After 45 days, they collect $114,000. What is the rate of return on this factoring investment?