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Assume you are the manager of XYZ Corporation, an LLC sole proprietorship. You have assets of $500,000 and Liabilities of $300,000. Your current and quick

Assume you are the manager of XYZ Corporation, 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 at the end of year three. After that, the project will continue to give a net profit of $75,000 per year. Using Finklers suggestion of long-term sources of capital, and, assuming you could actually effect all of them, analyze the various options in todays marketplace. Assume, that you can decide to make it a secured loan, but, it will tie up capital that could be used elsewhere in your operations. You are not going to personally guarantee that loan. This exercise requires you to go out to the marketplace and get some current rates on the various options. Make whatever additional assumptions you need, but make sure you state those assumptions. What direction are you going to take? Why?

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