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14706 Points
Joined August 2012
Dear Kajal,
While calculating investament in receivable we have to consider ACP and cost of investment .
In this question 40% customer pays the debt in 10 days while the rest in 90 days which means ACP =(0.4*10+0.6*90) 58 Days
Now the projected sale is 1000 crore and according we have to calculate investment in debtors but finance company invest in debtor via mix debt and hence we have to calculate the cost of mix debt which comes to 13.60%
And finaly we will calculate cost of investement in receivable
Hope it will help you out