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Q. Show Inter-Corporate Deposits?
Inter-Corporate Deposits: Inter-corporate lending/borrowing or deposits (ICDs) is a popular short-term investment alternative for companies in India. Generally a cash surplus company will deposit (lend) its funds in a sister or associate companies or with outside companies with high credit standing. In practice, companies can negotiate inter-corporate borrowing or lending for very short periods. The risk of default is high, but returns are quite attractive.
State about Investment decision Decisions relating to investment in both current and capital assets. Finance manager has to evaluate different capital investment proposalsan
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The credit term from the supplier is 2/30, net 60. Question: Calculate the effective annual rate if the firm does not take the discount.
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