Like we do not invest in growth capex as long there is revolver in the BS.
I am modelling a company that has a policy of zero debt. I have forecast M.Capex as a fix % of Revenue t+1 and the rate for Growth Capex comes from the assumption that they need to reduce year to year the % of investment in order to reach an overall Capex/D&A = 1.
I am having problems because my capex investment is building up my revolver, which keeps growing year after year.
Is there a way that I can modify the debt schedule to ensure repayment in case there is cash left and the capex assumption to ensure investment only if revolver is zero?
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