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A company has a collection period of 33 days and factors all receivables immediately at a discount of 2.3 percent. What is the effective annual

A company has a collection period of 33 days and factors all receivables immediately at a discount of 2.3 percent. What is the effective annual cost of borrowing? Assume 365 days per year.

Multiple Choice

  • 28.60 percent

  • 27.01 percent

  • 26.04 percent

  • 25.42 percent

  • 29.35 percent

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