Boomwichers NV, a Dutch company financed by shareholders’ equity only, decides during the course of 2008 to finance an investment project worth BC200m using shareholders’ equity (50%) and debt (50%). The loan it takes out (BC100m) will be paid off in full in n + 5, and the company will pay 5% interest per year over the period. At the end of the period, you are asked to complete the following simplified table (no further investments are to be made):

What do you conclude from the above?

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Period 2008 2009 2010 2011 2012 2013 Operating inflows 165 200 240 280 320 360 Operating outflows 165 175 180 185 180 190 Operating cash flows Investments -200 Free cash flows Flows... ... to creditors to shareholders