Sources of Finance and Investment Appraisal Techniques for Zylla Limited's Ferry Project

Business Scenario for
individual report

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
I. Short and long term sources of finance to acquire the funds for ferry and maintaining the
working capital needs of the business.........................................................................................3
II. Evaluation of the different investment appraisal techniques following the recommendation
about the viability of the project.................................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business investment is bring considered at that amount of money which is being invested
by the business in different growth plans for the development of the business(Pizzola, 2018). Th
following report is based on the Zylla limited which operate the number of ferries. With the help
of these ferries they help the common people to cross the river and goods. The respective
company is going to expand their business by buying a new Ferry in order to fulfil the demand.
The following report is bifurcate into two sections in which first sections help the board of
directors by providing information related to the long and short term source of raising the fund
and in the second section of this report different tools of investment appraisal has been checked
and find out whether the investment done by the company is viable or not.
TASK
I. Short and long term sources of finance to acquire the funds for ferry and maintaining the
working capital needs of the business.
Sources of finance is being considered as one of the most important part of the company
through which organisation plan their capital in the contributing in the different task. The fund
which are raised by the company help them to operate the different functions in a very effective
manner (Keag, Norman and Stock, 2018). There are different types of sources through which the
capital requirement of the Zylla limited can be fulfilled. The sources of funds has been discussed
below :-
Long term sources of raising the fund :-
 Issues of Shares :- this is being considered as the most common method of raising the
fund form the market. In this methods the organisation can raise the capital by providing
them shares of the company. The capital which is raised by issuing the share is durable in
nature which means that organisation can keep it until its liquidation.
 Debentures :- this is that mode of mode of method through which an organisation can
effectively manage their long term reserves. Debenture are basically that type of credit in
which the company have to pay the interest whether they earn profit or not and along
with this the organisation have to pay back the credit amount within the indicated time
frame. For the acquisition of Ferry this is very well for the company.