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Timber Plc have identified a 5-year capital investment project and are preparing a schedule of cash flows for the project to identify whether they should
Timber Plc have identified a 5-year capital investment project and are preparing a schedule of cash flows for the project to identify whether they should proceed with investment. If the project goes ahead, the company will raise a 5-year loan of 5 million to finance the project with an annual interest rate of 10%. How should the cash flows on the loan be treated in the schedule of project cash flows?
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