Using the 2 mark basis, I break it down jnto 0.5/1.5. 0.5 for identifying something relevant. 1.5 for explaining why it is relevant and it’s implications.
So:
The economy is predicted to contract (0.5)
The economy is predicted to contract and this will adversely affect our sales (0.5 +0.5)
The economy is predicted to contract and this will adversely affect our sales and cash flow increasing the difficulty we face in servicing the finance of the proposed investment in new machinery (0.5 + 1.5)