Bridgeton Knitting, Inc. is considering factoring its receivables. The firm has annual credit sales of $21,600,000. Its average collection period is 72 days and its average level of accounts receivables is $4,260,000. Annual bad-debt losses over 72 days average $10,000 and credit department costs are estimated at $20,000 every 72 days. Both of these costs would be eliminated if Bridgeton factored its receivables. The factor requires a 15 percent reserve against returns and allowances and charges a 3 percent factoring commission. The factor will advance Bridgeton funds at 2 percentage points over the prime rate, which is currently 4.25 percent. What is the annual percentage financing cost (AFC) after considering cost savings and bad-debt losses? Assume a 365-day year.