What would be motoguzzie annualized percentage

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Question - Motoguzzie exports large-engine motorcycles (greater than 700cc) to Australia and invoices its customers in U.S. dollars. Sydney Wholesale Imports has purchased $2,990,000 of merchandise from Motoguzzie, with payment due in five months. The payment will be made with a bankers' acceptance issued by Charter Bank of Sydney at a fee of 1.79% per annum. Motoguzzie has a weighted average cost of capital of 9.5%. Bank of America is willing to buy Motoguzzie's bankers' acceptance for a discount of 5.9% per annum. What would be Motoguzzie's annualized percentage all-in cost of financing its $2,990,000 Australian receivable?

Reference no: EM133174048

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