Assessing Funding Sources and Viability of Ferry Acquisition for Zylla Ltd

Financial Decision

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Assessing long and short term sources of funds available to Zylla Ltd and for the working
capital needs.................................................................................................................................3
Presenting the evaluation of investment appraisal techniques and recommending the viability
of ferry.........................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In the context of business unit, manager is assigned with accountability to rake suitable
decision that contributes in organizational profitability. The present report is based on the case
scenario of Zylla Ltd which operates a number of ferries. As per the scenario with the motive to
fulfill increasing demand level company is planning to purchase more ferries. In this regard,
report will provide deeper insight about the funding sources that Zylla Ltd can undertake for the
acquisition of new ferries and meeting requirements pertaining to working capital. Further, report
also entails the extent to which acquisition of ferry will prove to be beneficial for the firm.
MAIN BODY
Assessing long and short term sources of funds available to Zylla Ltd and for the working capital
needs
Given case scenario presents that company is looking for the sources that helps in
meeting funding requirements pertaining to ferry acquisition and working capital. In this regard,
several short and long term sources are available such as:
Short term sources of finance
 Factoring: By discounting receivable from financial institution early at discounting rates
Zylla Ltd can receive funds before due date. It is one of the most effectual sources which
help in collecting funds for meeting to day to day operations at lower cost (Tang and
Moro, 2020).
 Retained profit: Further, with the motive to cope up with contingent situation company
retains some profit margin. Thus, by using retained profit Zylla can ensure daily financial
requirements for some time period.
Long term sources
 Issue of equity and debts: For the collection of £150000 with regards to ferry acquisition
company can issue equities and debts. For getting higher income and value addition
investors prefer to invest money in shares of growing firms. In the case of equities,