Various Sources of Finance and Investment Appraisal Techniques

Business Scenario:
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................................................................................................................................5

INTRODUCTION
Business situation is the combination of factors that converge to form an organization. The
central motive in producing this study is to provide an explanation of investment or project
appraisal methods and the methodology by which any investment can be analysed or evaluated
(Alkaraan, 2017). A narrow-scale corporation named Zylla Ltd is being reviewed in this study-
report. The corporation specializes in ferries business under which it offers river
commute crossings services to different people and vehicles. Multiple different short-term as
well as lengthy-term sources of funding/finance are examined in this study for the intention of
fulfilling the corporation's funding requirements. Afterward in this study, key investment
appraisal techniques/methods are evaluated to determine whether or not proposed project
or investment of the ferry is feasible.
MAIN BODY
Various short and long-term sources of finance
The enterprise considered in study is Zylla Ltd, which seeks funds for their
newest investment in ferry to provide them with access to boost their efficiency and address
ever-increasing market demands. Investing in new ferry ltd. has lifted both Zylla Ltd's short-term
and lengthy-term financing criteria. Short-term financing for the motive of having met the need
for operating capital and long-term funding to purchase new ferry. All those funding alternative
options are simply listed and discussed below:
Bank overdraft facility It is a kind of short-term fund facility that the company's bank may tap.
This system allows an enterprise to withdraw a certain sum (depending on limit provided by
bank) from its current account that exceeds the total available balance. The
banking institution charges interest on this service and it does not place an impact pressure on the
corporation. The corporation can use such fund to satisfy its requirements for operating or
working capital requirements, and by doing so, they can easily manage ferry (Awojobi and
Jenkins, 2016).
Promissory note – It's also a major means of organisational finance for a short term,
because the duration of these note is limited to one year. Enterprises such as Zylla Limited.
through issue promissory note to its trading partners or particular entities from whom they may
receive a sum payable on certain due date together with the specified interests or commission.
1