Jamison Ltd is considering a risky investment project in offshore operation. To finance the ongoing working capital needs of the project over 15years, $20million will be needed if it continues to be successful. The board of directors is considering two options to finance the project i) issue more shares or ii) borrow the required cash.Assume that the expected returns on ordinary shareholders' equity are the same for both options.

Required:

Explain how should the board of directors of Jamison Ltd rank the two options. Include in your discussion the factors that should be considered by the board. (word limit: 150 200 words) Please follow the word limit and answer accordingly.