Where a Creditor Is Financing the Inventories of a Manufacturer

question 6

True/False

Where a creditor is financing the inventories of a manufacturer of life preservers, the most sensible security for all involved is a floating charge.

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Definitions:

Return

The income generated from an investment, expressed as a percentage of the original investment cost.

Discounted Payback

A payback period calculation that takes into account the time value of money by discounting each of the cash flows from the project at a particular rate before it sums them to determine the break-even point.

Payback Period

The time required for the return on an investment to "pay back" the sum of the original investment, commonly used as a measure of investment risk.

Profile

A description or analysis of the characteristics, qualities, or activities of a person, organization, or thing.