Calculate total amount of term A repaid in year 1 post deal using assumptions below.

Assume there are no mandated repayments, and all available cash flows can be used for debt repayment.

Assume cash taxes paid is after allowing for the tax shield on interest payments.

Assume interest is calculated on beginning balances.

a) 163.2

b) 194.4

c) 247.1

d) 333.6

*Answer is 163.2 - please provide explanation.

Term A beginning balance 909.3 Interest rate on term A 5.8% Term B beginning balance 479.7 Interest rate on term B 6.5% Cash flow statement EBITDA 332.3 Capex 27.9 Increase in OWC 14.6 Cash taxes paid 42.7