Wilson Finance purchased $200,000 in accountsreceivable from Harrison Manufacturing for $185,000.After 120 days, Wilson Finance was able to collect$195,000 from the receivables.Determine the rate of return on this investment forWilson Finance.

Step 1: Identify Key Values From the problem statement:Investment (Initial Purchase Price):…

Answered: Wilson Finance purchased $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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Wilson Finance purchased $200,000 in accounts receivable from Harrison Manufacturing for $185,000. After 120 days, Wilson Finance was able to collect $195,000 from the receivables. Determine the rate of return on this investment for Wilson Finance.