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NEW QUESTION: 1
A company enters into an agreement with a firm who will factor the company's accounts receivable. The
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company estimates that the company would save $18,000 in collection expenses over the year.
Fees and interest are not deducted in advance. Assuming a 360-day year, what is the annual cost of
financing?
A. 12.0 percent.
B. 16.0 percent.
C. 14.0 percent.
D. 17.5 percent.
Answer: D
Explanation:
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NEW QUESTION: 2
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