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Term loan has been selected to finance this project since this type of a loan can be easily obtained by Trevor PLC. It's quoted public company and this loan is obtained as the project oriented loan. Company's controlling power and the ownership of the existing shareholders will not be diluted. This is a main advantage to the company. In addition to that company does not have to incur any issue cost on issuing shares or debentures to the public. Company should have to incur only the interest payment on the borrowed amount of ￡ 1m. Further interest payment on such loans is tax deductible and company can enjoy some tax savings. Debt holders do not have any controlling power on the entity. Anyhow company liable to pay interest whether company earn profit or incur loss. But this method is very suitable since this project generates a positioned net present value.

In addition to the above this type of a loan repayment is geared to the specific needs of the project and may include a grace period before repayments commence and easier repayment schedule at the early stages of projects operations. Depending on the nature of the cash flow patterns firms are sometime allowed to capitalize the interest during the start up period.

财务分析-Financial Planning

Finance for a business is provided either by owners or creditors. Finance is categorized by their maturity periods as short term and long term. Short term funds have maturity of on e year or less while long term funds have maturity of more than on e year. Therefore financial planning is very important for a finance manger since he has to match cash inflows from assets with the assets sources of financing. As such medium and long tem fiancé investment in an enterprise should be financed from a medium and long term source. Investment in fixed assets such as land and buildings, plant and equipment generates benefits during their effective economic life. Therefore fund s locked in these assets will be repaid over a longer period. Thus long term assets should not be financed through short term sources. Therefore financial planning is significant without which company may incur heavy losses or possibility to go for bankruptcy.

决策者的信息需求-Information Needs of decision makers

Piece of Information about any company is very essential to the stake holders who are interested in that company. Different stakeholders see the organizations from different angels. As such existing shares holder's likes very much about the sales, gross profits, expenses incurred and profits earned during the period and any dividend payments. Potential investors are interested about the current earnings per share and new investments that the company is going to be implemented. Employees keen about the bonus payments, incentives, series and wages and potential survival of the company to ensure their job security. Government regulators are looking for information about profits and business operation to collect tax payments and other duties imposing on the nature of the business. As such different king of information about the company serves the stakeholders to make decisions which maximize their value.

单位成本和利润率-Unit Cost and Profit Margin

As per the calculation (Ref