
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Transcribed Image Text:Peak Industries has $420,000 in accounts receivable that will be collected
within 60 days. The company needs cash urgently and decides to factor them,
receiving $395,000.
Mountain Factoring Company, which took the receivables, collected
$435,000 after 75 days.
Find the rate of return on this investment for Mountain.
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