1.Suppose that we are going to make an investment in a machinery whose cost is 90,000 euros and we plan to obtain a profitability of 20%, that is, we will obtain a profit of 18,000 euros. For the financing of this project, two scenarios are proposed (in both cases we understand that all the benefit obtained is liquidity):

a.Own financing 70% - Third party financing 30%. Total cost of external financing: 1,755 euros. Income Tax 25%.

b.Own financing 20% - External financing 80%. Total cost of external financing: 3,960 euros. Income Tax 25%.

1.1 Based on the information provided and considering this operation in isolation, it analyzes which of these two project financing options is more interesting from the point of view of the profitability of the partners and the debt ratio.

1.2 After choosing one of the options, state what specific types of financing you would use. Give examples.