COMPUTER SCIENCE TRIPOS Part II – 2018 – Paper 7
Business Studies (SAMcT)
(a) Describe the characterists of debt and equity financing, highlighting the
differences between them. [4 marks]
(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 cashflow 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]