The delta fish hatchery factors its accounts receivables


The Delta Fish Hatchery factors its accounts receivables immediately at a discount rate of 1.8 percent. The average collection period is 39 days. Assume all accounts are collected in full. What is the effective annual interest rate on this arrangement?

18.53 percent

17.20 percent

20.36 percent

21.78 percent

16.04 percent

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Financial Management: The delta fish hatchery factors its accounts receivables
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