6 marksThe Need for Capital and Sources of Finance

CAPE Management of Business Unit 1 · 2014 · Paper 2 · Question 5(d)

Outline THREE factors that Effective Solutions Ltd should consider when choosing a source of finance for the project chosen.

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Other parts of this question

5(a)(i)Compute for EACH project the payback period.[6 marks]
5(a)(ii)Compute for EACH project the net present value.[9 marks]
5(b)Suggest to the company the best investment option based on the net present value method. State a reason to support your answer.[2 marks]
5(c)Identify TWO possible sources of finance that Effective Solutions Ltd could consider for the investment project chosen.[2 marks]

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