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Custom Granite Inc

question 37

Multiple Choice

Custom Granite 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:

Preoperational

A stage in Piaget’s cognitive developmental theory during which children from ages 2 to 7 engage in symbolic play and struggle with taking the perspective of others.

Postformal

A stage of cognitive development beyond formal operational thought, where individuals can understand and integrate conflicting ideas, abstract reasoning, and situational flexibility.

Freestyle Motocross

An extreme sport involving motorcycle riders performing aerial stunts and jumps.

Extreme Sport

A category of sports that are perceived as having a high level of inherent danger or that involve adrenaline-inducing action.

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