Financial Management and Analysis

Biz Systems Consultants Ltd is a new consultancy firm, set up by a group of experienced personnel who are now exploring growing demand for retail businesses changing and upgrading from manual systems to computerised systems. There are three projects which the business has in hand to explore in the City of London.

The project requires an initial investment of £1,700,000. This amount can be borrowed from the bank at the rate of 5% per annum. The projects are mutually exclusive. The shareholders of the firm are expecting a minimum return of 7.5%.

a) critically evaluate the techniques that can be used to aid in deciding the best options.
50 marks
b) critically evaluate how the £1,700,000 can be raised and recommend three sources of finance justifying your reasons.