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A firm buys on terms of 3/4, net 45 days, it does not take discounts, and it actually pays after 56 days. What is the

A firm buys on terms of 3/4, net 45 days, it does not take discounts, and it actually pays after 56 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

a. 21.71%

b. 20.36%

c. 22.33%

d. 21.94%

e. 23.84%

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