all cashflow will be repaid to debt holders. calculate how much for yr 1 NI 4.5 Dep 1.3 Transction costs 2 (to be armotized over 5 yrs) Total cap expenditure 1.8 Net( new) Capital expenditure .5 Increase Net WC .6 a. 3.8 b. 5 c.5.1
A - 3.8 Guess The ? boils down to whether you use total capex or NEW capex. I’ve never really understood this well, but in my head I think you would deduct full capex because those dollars are needed to keep the business at status quo PLUS a kicker for the growth you are looking for. 4.5+1.3+.4-.6-1.8 = 3.8
yes. either dont add depreciation back and use new capex or add dep back and use total.