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As a part of their expansion plan, Pepsico is planning to buy a new fleet of cars in 2021. Ordinarily, they would resort to their

As a part of their expansion plan, Pepsico is planning to buy a new fleet of cars in 2021. Ordinarily, they would resort to their bank to take long-term financing to fund the purchase. However, the company is already highly leveraged and the bank refused to give them additional funding.

  1. What is their best option now if they insist on buying the cars?
  2. Would this type of finance be short or long term?
  3. What kind of advantages does Pepsico have if it resorts to this type of financing?

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