Acquire PPE. Assuming 5% cost of debt with no principal repayment until maturity, 10% straight line depreciation and 30% tax rate, how are the financial statements affected at beginning year 1 and at end of year 1?
Assuming 100% equity:
Income Statement:
Cash Flows:
Balance Sheet:
Assuming 50% equity and 50% debt:
Income Statement:
Cash Flows:
Balance Sheet:
Thank you kindly
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