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Your firm has an average collection period of 4 9 days. Current practice is to factor all receivables immediately at a 2 percent discount. What

Your firm has an average collection period of 49 days. Current practice is to factor all receivables immediately at a 2 percent discount. What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.

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