i need correct answer accounting question Capital Funding purchased $350,000 inaccounts receivable from Apex Manufacturingfor $320,000. After 90 days, Capital Fundingcollected $335,000 from the receivables.What was the annualized rate of return on thisinvestment for Capital Funding?

Calculate the profit:Profit = Amount collected - Purchase priceProfit = $335,000 - $320,000 =…

Answered: Capital Funding purchased $350,000 in…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 16E

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Capital Funding purchased $350,000 in accounts receivable from Apex Manufacturing for $320,000. After 90 days, Capital Funding collected $335,000 from the receivables. What was the annualized rate of return on this investment for Capital Funding?