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3. Suppose that a firm sells its accounts receivable totalling $100 to a fac- tor at a 3% discount. The company's average collection period is

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3. Suppose that a firm sells its accounts receivable totalling $100 to a fac- tor at a 3% discount. The company's average collection period is 2.5 months. What is the implicit effective annual interest rate on the fac- toring arrangement? (Hint: use 4 decimal points for your calculations.) A. 17.53%. B. 14.00%. C. 25.70%. D. 24.42% E. None of the above

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