Motoguzzie annualized percentage

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Motoguzzie (A). Motoguzzie exports large- engine motocycles (greater than 700cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $3,000,000 of merchandise from Motoguzzie, with payment due in six months. The payment will be made with a bankers' acceptance issued by Charter Bank of sydney at a average cost of captial of 10%. If Motoguzzie holds this acceptance to maturity, what is its annualized percentage all-in cost?

Motoguzzie (B). Assuming the facts in Problem 16.3, Bank of America is now willing to buy Motoguzzie's bankers' accptance for a discount of 6% per annum. What would be Motoguzzie's annualized percentage all-in cost of financing its $3,000,000 Australian receivable?

Reference no: EM132719479

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