What is the effective cost of borrowing please show all


A firm has an average collection period of 24 days. Current practice is to factor all receivables immediately at a discount of 1.4 percent. Assume default is extremely unlikely and that there are 365 days in a year. What is the effective cost of borrowing? Please show all work so I can reproduce the answers.

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Business Economics: What is the effective cost of borrowing please show all
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