Business Scenario for Individual Report.

Business Scenario for
Individual Report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Various short and long term sources of finance..........................................................................1
Evaluation of investment appraisal techniques with recommendations......................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business scenario is the variation of elements which combine together to develop an
organisation (Isaac and O'Leary, 2013). The main aim of developing this report is to build an
understanding about the procedure of investment appraisal and analysis of the techniques by
which an investment can be appraised. In this report, a small scale organisation is being assessed
which is Zylla Limited. This organisation is operating in the business of ferries in which the
provide commute services of river crossing to various individuals and vehicles. In this report,
various short term and long term sources of finance are assessed for the purpose of fulfil the
finance requirements of the company. Later in this report, investment appraisal techniques are
evaluated for the purpose of ascertaining whether or not investment of the new ferry is viable.
MAIN BODY
Various short and long term sources of finance
The organisation which is considered in this report is Zylla Limited which is seeking
finance for their new investment in ferry which will provide them access to enhance their
productivity and fulfil ever increasing demand from the consumers. Investment in the new ferry
has levied both the short term and long term finance requirement for Zylla Limited. Short term
finance for the objective of fulfil working capital requirement and long term finance for
acquiring the new ferry. All these finance options are identified below:
Bank overdraft facility - This is a short term fund which an organisation can access from
their bank serve. This facility enables an organisation to withdraw an amount from their bank
account which exceeds their available balance (Cardarelli, Elekdag and Lall, 2011). Against this
facility, bank charges a fee which does not levy impactful stress on the organisation. This fund
can be used by the company to fulfil their working capital requirement and by this, they can
effective maintain their newly invested ferry.
Trade payables – This is another short term finance source which enable to organisation to
trade with their suppliers without paying them money. The realisable period of this fund is
maximum one year depending upon the credit policy of the supplier. By using this source, Zylla
can procure raw materials for their operations on credit and can pay them back after few months.
This fund will fulfil their working capital requirements.
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