I am looking at Reading 22 - Capital Budgeting, pg 61 of the CFA curriculum, and I just cant seem to figure out where they are getting one of the figures in the table from.
It’s Table 30 I am referring to, and the item is “Debt Repayment” - for example they show a figure of -11,525 for the first year.
It obviously corresponds to the change in “Liabilities” from year 1 to year 2 - but how is it calculated.
I get the “Interest Expense” of 9,146 is just the 109,746 (Year 0 Liability) * 0.08333 (interest rate) - but not sure how they get the “Debt Repayment” figure.
I got stuck on this on my first run through, hoping it would click on my second run through but it’s driving me nuts!
Am I missing something completely obvious?