The correct answer is accounts receivable.
While a loan must be repaid, factoring is the selling of accounts receivable to a finance company who then assumes responsibility for collecting the accounts.
<h3>What is factoring? </h3>
- Factoring is concerned to a kind of financial transaction. It is also a type of a debtor finance.
- In factoring a business sells it accounts receivable to another party at a lower cost or at a discount.
- It is usually used in international trade finance.
- It is also known as invoice factoring, accounts receivable factoring, or also as receivable financing.
- In factoring there are three different parties directly involved.
- The whole process highly confidential.
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Answer:
this could be a hard lead if this has to do with writing an article of some sort Explanation:
Answer with Explanation:
There are so many factors affecting the demand for a particular commodity. Four of these are: the price of the complements, the income of buyers, changes in trend and advertisements.
1. The price of the complements - Some commodities are complementary with each other, just like cars and gas. If the <em>price of cars decreases</em>, then many people will purchase their own cars, which also follows that <em>the demand for gas will increase.</em>
2. The income of buyers - If the income of a person increases, then he will most likely purchase a particular commodity because he can afford it and has an extra money to purchase goods.
3. Changes in trend - Many people purchase goods because they're on trend. For example, if flare pants are fashionable this year, then the demand for it will increase. Once they're no longer on trend, the demand will drop.
4. Advertisements - The more advertisements a company spends on, the more likely buyers will purchase a specific commodity.
Answer:
savings per year = $20,500 - $10,500 = $10,000
the loan and interest are not included in the calculation
initial outlay = $50,000
cash flows 1-8 = $10,000
cash flow 9 = $15,000
discount rate = 15%
using a financial calculator, the NPV = -$862.85, and the IRR = 14.53%
