hard · Asset-Backed Securities asset-nuances

A healthcare receivables ABS facility has an advance rate of 80% against eligible 'Net Realizable Value' (NRV).

If the provider generates $10,000,000 in gross charges, applies a 35% contractual adjustment, and 5% of the remainder is ineligible due to aging, what is the maximum advance available?

  1. $5,200,000
  2. $8,000,000
  3. $5,066,667
  4. $4,940,000

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