Short and Long Term Sources of Finance and Investment Appraisal Techniques for Zylla Limited

Business introduction
2

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 refers to the amount that the business invests in the different growth
prospects of the business (Cosenz, and Bivona, 2021). Zylla Limited is a business which operates
number of ferries to help the common people to cross the river and the goods. The management
of Zylla wants to expand their business and buy a new Ferry to cater the demand. This report is
divided into two sections. The first section of the report aids the Board of Directors about the
possible ways they can take up for the short and long term sources of finance. And the second
section highlights the different investment appraisal tools to check if the investment in the new
ferry 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 can be characterized as mode through which organizations plan their capital
for contributing help to their tasks. The proposition of acquisition of funds and the day by day
working capital need a few sources through which the capital prerequisite of Zylla Limited can
be fulfilled. Following are a portion of the modes that can be utilized by the organization for the
sourcing its money.
Long term capital need for acquisition of ferry
 Issue of Shares: The organization can give offers to people in general by welcoming
them to buy their shares. This will help it in organizing a super durable capital that the
organization does not need to pay back until its liquidation (Chatzitheodorou, and et.al.,
2019).
 Debentures: It is likewise a mode through which the organization can organize its long
term reserves. These are the kinds of credit that the firm needs to reimburse in indicated
time-frame and needs to make instalments of interest consistently consequently of this
sum. It very well may be utilized for the acquisition of Ferry.
Short term capital need for working capital needs
 Loans from Bank: Zylla can benefit advance from bank for organizing its functioning
capital. This sum is given by bank consequently for some return as interest. The