Am I nuts or did the question about the Distribution Centre ask what the cash flow would be if you funded it with 40% debt (not 50%)? I spent 10 minutes on this fairly easy question and got that horrible feeling when your answer isnt A, B , C or D. I just guessed the closest one. When reviewing the answers it uses a 50% debt funding level.
Somebody else said that was an error
I have another question on this one. why it’s 30,000 not 50,000? the increasement in working capital need not be financed with sth?
I wondered the same thing
It’s 30M because the North distribution is using that much to fund the project. How did you get 50M?? I don’t think you normally include the change in NWC. Yea the answer is 50%…at first I thought maybe it’s because it’s semi-annual payments of interest, but that makes no sense either.