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If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change? The firm will increase its cash cycle

If a firm starts selling its accounts receivable to a factor, how will the firm's cash cycle change?

The firm will increase its cash cycle since it will now have to wait longer for payment.
The firm will decrease its cash cycle since accounts receivable is reduced.
Depending on conditions, the cash cycle could either increase or decrease.
There will be no change.

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