Read each case study below and analyse and decide which type of finance option the business should go for and why. Provide a critical assessment. HINT: There could be more than one finance option available to the company! Case 1 A medium sized engineering firm with an annual turnover of 2.5 million has decided to install a new piece of machinery to help improve its productivity. The equipment needs to be housed in a new building to be constructed on the site. The forecast cost of the building is 150,000 and the equipment 400,000. Case 2 An individual has been made redundant after 20 years with a major organisation and has received a lump sum redundancy payment of 70,000. The individual is planning to set up a shop selling antique furniture in Pendeford. He has identified a suitable premises valued at 180,000 near to a major town centre shopping precinct. Case 3 A large plc is planning on moving a major part of its production facility to Wolverhampton. It has identified a derelict site near to the city centre with good road and rail links. The estimated cost of the facility is 4.5 million to buy outright. Case 4 A local Do It Yourself (DIY) store is experiencing problems getting a loan from the bank as they have not been able to keep up with loan repayments in the past. The bank now sees the company as high risk. However, over the past 12months, business has really picked up due to a nearby DIY store closing down. The company now needs to extend the premises so they can hold more stock to meet demand. Case 5 A local football club, Wolverhampton Wanderers, has been promoted to the Premiership. The owners of the club have decided to improve facilities at the ground in order to compete with the reputation of the bigger clubs in the league. In order to do this, they must raise 550,000. Case 6 A small bakery in Oxley has just received an order to supply ten wedding cakes during September. However, in order to do this they need to buy the ingredients in advance. They need to raise 1000 of capital before they can accept these orders.