Your Firm Factors Its Accounts Receivable Immediately at a 3

question 50

Multiple Choice

Your firm factors its accounts receivable immediately at a 3% discount. The average collection period is 41.95 days. Assume that all accounts are collected in full. What is the effective annual interest rate on this arrangement?

• A) 27.9%
• B) 30.3%
• C) 31.7%
• D) 32.9%
• E) 34.3%

Evaluate the impacts and limitations of government involvement in addressing market failures.

Understand the implications of public officials and voters' incentives on legislative processes.

Discern the challenges associated with using voting as a decision-making mechanism in public choice theory.

Understand the concept and legal implications of intentional misrepresentation and the available remedies.