Enugu Farms Ltd, a small company, obtains invoice discounting on a ₦12,000,000 receivable. The finance house charges a 3% service fee and advances 80% of the invoice value immediately. What is the immediate cash advance received by Enugu Farms Ltd?

The finance house advances 80% of the face value of the invoice: 80% × ₦12,000,000 = ₦9,600,000. The 3% service fee of ₦360,000 is typically deducted when the invoice is settled by the debtor, not from the initial advance. Therefore, the immediate cash received is ₦9,600,000. Option C incorrectly deducts the fee from the advance amount.