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The firm factors its accounts receivables immediately at a discount rate of 2 percent. The average collection period is one month. Assume all accounts are

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The firm factors its accounts receivables immediately at a discount rate of 2 percent. The average collection period is one month. Assume all accounts are collected in full. What is the effective annual interest rate on this arrangement? A) 21.92 percent B) 24 percent C) 24.49 percent D) 26.82 percent E) 27.43 percent

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