As the financial manager at Nkosi Manufacturing $($Pty$)$ Ltd$,$ located in Durban, South Africa, you play a critical role in the company's financial management. Nkosi Manufacturing is a medium$-$sized company that specializes in producing eco$-$friendly packaging materials. Despite its steady growth, the company is striving to expand its operations further. Currently, the company generates an annual revenue of R$50$ million and incurs annual expenses of R$30$ million, leaving it with cash reserves of R$10$ million.

The company aims to enhance its production capacity by investing in new machinery, which costs R$15$ million. In addition to these expenses, Nkosi Manufacturing has a long$-$term debt of R$5$ million that incurs an annual interest rate of $9\%.$ Furthermore, the company allocates R$2$ million to pay its shareholders an annual dividend, while its retained earnings are at R$5$ million.

Given this information, your role as the financial manager is indispensable. Your expertise and insights are highly valued as you work to develop a comprehensive financial plan that addresses various aspects of financial management, including budgeting, investment, and debt management.

Given this information, your role as the financial manager is crucial in developing a comprehensive financial plan that addresses various aspects of financial management. Your expertise and insights are highly valued in this process.

$$ Evaluate the different financing options available for Nkosi Manufacturing to finance the new machinery purchase. Discuss the pros and cons of each option and recommend the best financing strategy based on the company$$s financial situation. $[15]$