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Lets say Apple is buying $100 worth of new iPad factories with debt. Now lets go out 1 year, to the start of Year 2.
Lets say Apple is buying $100 worth of new iPad factories with debt. Now lets go out 1 year, to the start of Year 2. Assume the debt is high-yield so no principal is paid off, and assume an interest rate of 10%. Also assume the factories depreciate at a rate of 10% per year. At the start of Year 3, the factories all break down and the value of the equipment is written down to $0. The loan must also be paid back now. Walk me through the 3 statements
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