Hi,
Ref: Lecture on borrowing costs
My name is Alicia.
I don’t understand one thing, calculating the temporary investment of surplus funds of 90 mlns (from 31. August till 1.11). This was calculated for two months, which I understand as then there was a strike. But why we didn’t add another 2 months when the work resumed from 1.1 until completion 2 months later. We did it for borrowed costs why not for invested? Didn’t we earn any invested income during this time?
Many thanks for your lectures.
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Borrowing costs
13y ago#1Correct, we didn't. The question said "work resumed on 1 January and the rest of the money was spent ( from memory! ) " so we didn't earn any interest after work was suspended on 1 November
It makes perfect sense now.
Thank you.
13y ago#3Welcome :-)
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