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Rogue Spices Inc

question 43

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Rogue Spices Inc. has a Canadian receivables contract for $200,000 due in 270 days. The firm has been approached by a factoring firm that offers to purchase the receivables at a 12% per annum discount plus a 1% charge for a nonrecourse clause. What is the annualized percentage all-in-cost of this factoring alternative?


Definitions:

White Blood Cell Count

A test measuring the number of white blood cells in the blood, indicating the body's immune system activity.

Below Normal

Indicative of measurements or conditions that are less than the typical or expected standard.

Immunity

The ability of an organism to resist a particular infection or toxin by the action of specific antibodies or sensitized white blood cells.

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

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