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A company has a collection period of 30 days and factors all receivables immediately at...

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Finance

A company has a collection period of 30 days and factors all receivables immediately at a discount of 2 percent. What is the effective annual cost of borrowing? Assume 365 days per year. Multiple Choice 24.22 percent 27.86 percent 27.24 percent 24.83 percent 25.73 percent

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