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A company has a collection period of 31 days and factors all receivables immediately at a discount of 2.1%. What is the effective annual cost

A company has a collection period of 31 days and factors all receivables immediately at a discount of 2.1%. What is the effective annual cost of borrowing? Assume 365 days per year.

Multiple choice:

25.26%

28.39%

27.72%

24.64%

26.18%

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