For this TMA you will need to read the Fusion Holdings case study, which is provided as a separate document titled Fusion Group Case Study. The company is considering a number of different proposals on how the business could develop in the future. Write a report to the CEO addressing the following questions.
Question 1
a.Analyse the current forms of finance available to the Fusion Group.
(15 marks)
b.Recommend improvements in how the Group finances its business operation.
(12 marks)
c.Evaluate the three debt finance proposals outlined in Appendix five and recommend which should be chosen.
(23 marks)
Total: 50 marks
Suggested word count is up to 1,800 words.
Question 2
a.Evaluate the proposal to move the manufacturing facility from China to Mexico (Appendix 6), using NPV analysis.
(25 marks)
b.Discuss the foreign exchange risk associated with the project.
(12 marks)
c.Evaluate the decision to use the overall Group cost of capital for the NPV analysis.
(10 marks)
Marks will also be awarded for report format and correct use of referencing.
(3 marks)
Total: 50 marks
Suggested word count is up to 800 words.