Which is the better option for financing the new machine long-term loan from a bank or equity financing from the shareholders? Who should be then preferred supplier for the required chemical needed to produce the Cropmaster 18 Fertiliser?

Financing Assuming you have decided to invest in the Windwhistle model 230E, you now need to decide how to finance the investment. You have two options of financing for the purchase of the new machine. The first option is by taking up a long-term loan from a bank. The second option is through equity financing from the shareholders. In addition, Sheffield have identified four potential suppliers of the required chemical needed to produce the Cropmaster 18 Fertiliser that uses the Windwhistle model 230E. Each of the suppliers offer different credit terms as below; Supplier Cash discount Credit period A Cash discount period 15 days 10 days 7 days 15 days 2.0% 1.5% 3.0% 3.5% B Beginning of credit period Date of invoice End of month Date of invoice End of month 30 days 60 days 45 days 30 days C D The investment in the new machine, Windwhistle Model 230E will have a significant impact on the financial position of Sheffield Limited for its financial year ending 31 December 2020. Financing Assuming you have decided to invest in the Windwhistle model 230E, you now need to decide how to finance the investment. You have two options of financing for the purchase of the new machine. The first option is by taking up a long-term loan from a bank. The second option is through equity financing from the shareholders. In addition, Sheffield have identified four potential suppliers of the required chemical needed to produce the Cropmaster 18 Fertiliser that uses the Windwhistle model 230E. Each of the suppliers offer different credit terms as below; Supplier Cash discount Credit period A Cash discount period 15 days 10 days 7 days 15 days 2.0% 1.5% 3.0% 3.5% B Beginning of credit period Date of invoice End of month Date of invoice End of month 30 days 60 days 45 days 30 days C D The investment in the new machine, Windwhistle Model 230E will have a significant impact on the financial position of Sheffield Limited for its financial year ending 31 December 2020