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Assume that companys shareholders have only 150 000 EUR for capital expenditure they can invest at the end of 2020. The remaining 500 000 Euros
Assume that companys shareholders have only 150 000 EUR for capital expenditure they can invest at the end of 2020. The remaining 500 000 Euros are going to be raised in the form of a bank loan, the loan would be taken as of end of 2020. The debt is going to be repaid in 5 years in the form of annuity payments. Interest rate on loan is 5.75% (per annum).
Adjust free cash flows and estimate IRR.
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