Assume you are the manager of an LLC sole proprietorship. You have assets of $500,000 and liabilities of $300,000. Your current and quick ratios are above 1.0. You have an opportunity for your LLC that will require an additional $150,000 capital up front that will show payback in year three. After that, the project wilo continue to give a net profit of $75,000 per year.

Using suggestions of longterm capital, analyze the various options in today's marketplace. Assume that you can get a secured loan but it will tie up capital to be used elsewhere in your organization's operations. You will not personally guarentee the loan.

This exercise will require you to look at the marketplace and current rates. Make whatever assumptions necessary just state your assumptions. What direction would you take and why?

Answer rating: 100% (QA)

Given the information provided I would suggest taking a secured loan t... View the full answer