(b) What is the difference between a loan and an overdraft?[1 mark]Your software company is contracted to create a new control system for chocolate bar delivery in Cambridge. The contract is for a 6 month period, with payment of£400k against milestones in months 1, 3 and 6.
(c) Create an outline cash flow for the project assuming staff costs of£75k per month and overheads of£60k per month.[5 marks]
(d) What is your working capital requirement for the project allowing a contingency of a two month delay to one of either the second or third delivery milestones?[5 marks]
(e) How would you suggest to finance this working capital requirement, justifying your answer?[5 marks]