Kacie's has an average collection period of 23 days and factors all receivables immediately at a discount of .95percent.What is the effective cost of borrowing? Assume that default is extremely unlikely.
A) 16.32 percent
B) 16.28 percent
C) 16.36 percent
D) 16.52 percent
E) 16.49 percent
Correct Answer:
Verified
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