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b. Sesesey Ltd needs to increase its working capital by investing to the tune of GH400,000. The company has two alternative options as follows: Options
b. Sesesey Ltd needs to increase its working capital by investing to the tune of GH400,000. The company has two alternative options as follows: Options One: To take a trade discount granted on the basis of 4/40 net 100. Option Two: Borrow from the Bank with an interest rate of 25% per annum. The bank requires a matching contribution of 40% to be put in a current account yielding no interest. The full loan amount will be booked in the name of Sesesey Ltd. Required: Advise the company on which option it should select. (5 marks) (Total: 15 marks)
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