Boomwichers, NV, a Dutch company financed by shareholders' equity only, decides, during the course of the year "n", to finance an investment project worth $200m using shareholders equity (50%) and debt (50%). The loan it takes out (100m) 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)

PERIOD n n+1 N+2 n+3 N+4 n+5

Operating Inflows 165 200 240 240 280 320

Operating outflows 165 175 180 185 180 190

Operating cash flows

Investments -200

FREE CASH FLOWS

Flows...

to creditors

to shareholders