Hello tutor please answer the financial accounting question Orion Textiles has $160,000 in accounts receivable. They sellthem to a factoring company, Solar Factoring, for $150,000 cash.After 90 days, Solar Factoring collects $165,000.What is Solar's rate of return on this investment?

Step 1: Define Rate of ReturnRate of return measures the gain or loss of an investment relative to…

Answered: Orion Textiles has $160,000 in accounts…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

See similar textbooks

Similar questions

find the rate of return on this investment for donne.
find the rate of return on this investment for donne account
Buccaneer, Inc., has determined that it needs $10 million in cash per week. If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction. If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment. Calculate for the cash infusion of 2 million or 3 million then solve for Transaction Cost and Holding Cost.
What are the potential savings from the lockbox?
Carla Vista Design has daily sales of $54,000. The financial management team has determined that a lockbox would reduce the collection time by 1.7 days. Assuming the company can earn 4.1 percent interest per year, what are the savings from the lockbox? (Round answer to 2 decimal places, e.g. 12.25.) what is the Savings from the lockbox per year?
A mfg company is considering purchase of a new machine to increase it production capacity. The company has identified a new machine that costs $500,000 and is expected to increase production by 20%. The company expects to sell the additional products for $600,000, resulting in a net profit of $100,000. The company can finance the purchase through a bank loan with an interest rate of 5% over a five year term. What is the total interest expense for the bank loan over the five year term?
Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000, average inventories of $4,500, average accounts receivable of $25,000, and an average accounts payable balance of $7,000.Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Need help
Skyline Industries will need $2.2 million in 4.5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 3.6 percent interest, compounded annually. How much money must the company deposit to fully fund the equipment purchase? Can the calculator and excel solution be provided?
A firm needs $1.2 million in additional funds. These can be borrowed from a commercial bank with a loan at 7 percent for one year or from an insurance company at 9 percent for six years. The tax rate is 30 percent. What will be the firm's earnings under each alternative if earnings before interest and taxes (EBIT) are $415,000? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $ If EBIT will remain $415,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 5 percent? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $ If EBIT will remain $415,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 13 percent? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $
Moonlight Industries just signed a sales contract with a new customer. JK will receive annual payments in the amount of $50,000, $96,000, $123,000, and $138,000 at the end of Years 1 to 4, respectively. What is this contract worth at the end of Year 4 if the firm earns 3.75 percent on its savings? Can the excel and calculator solution be provided?
Company investment says will pay out $64,000 at the end of 3 years. To invest, you'll need to deposit $9,900 to their bank account and keep the information private. What is the average annual return on this investment? Remember to use a TVM function. the answer is provided: 86.29% Please show how to get on EXCEL in one function

SEE MORE QUESTIONS

Recommended textbooks for you

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Intermediate Financial Management (MindTap Course…

Finance

ISBN:

9781337395083

Author:

Eugene F. Brigham, Phillip R. Daves

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Orion Textiles has $160,000 in accounts receivable. They sell them to a factoring company, Solar Factoring, for $150,000 cash. After 90 days, Solar Factoring collects $165,000. What is Solar's rate of return on this investment?