Question
An Auto Finance Company (AFC) is doing business for last 20 years and offers various financial products including finance lease, hire purchase and operating lease.
An Auto Finance Company (AFC) is doing business for last 20 years and offers various
financial products including finance lease, hire purchase and operating lease.
AFC takes postdated cheques from customers in advance and deposits with banks on
due dates. AFC enters the realization date of all cheques in system on daily basis.
Average numbers of daily deposited cheques are 700. Around 10% of deposited
cheques gets returned unpaid. The unpaid cheques are deposited next day into bank.
The AFC cannot switch to Direct Debit because of certain reasons
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Analysis for Financial Management
Authors: Robert C. Higgins
10th edition
007803468X, 978-0078034688
