You are planning to leave your current employment and start a new business venture, once the MBA is completed. The business requires significant investment in manufacturing and/or distribution facilities and working capital funding during the initial stages. The cash generation will be relatively slower during this period, but you will have a healthy cashflow after the first three years of operation.

You are planning to use your gratuity funds and savings accumulated over the years as part of the initial investment. If required, the funds available will be sufficient to cover the complete capital investment of this project.

You need to identify the specific industry and a business model for the investment.

Prepare a report on how you should fund this investment, covering the following;

1. Identify the different components of investment which may require funding (ie land, building, machinery, working capital etc) (20%)

2. Identify the different funding sources you are going to use for each component of the investment and the proportion in what proportion you are going to mix them with justification (60%)

3. Calculate the Weighted Average Cost of Capital (WACC) of the project using indicative figures based on market rates (20%).

Instructions Individual submission which should be a 400 word submission.Answers to each part needs to be separately presented.