If Pepsi build a new office for $200 million and took a loan for the same amount at 10% interest, which of the following is true?

if this happen so,how do Cash flow from financing will increase by $180 million ?than what happen to interest which is @ 10%.

1 Answer(s)


$200 million in flow and 10% interest of 200 i.e. 20 million outflow, therefore net $180 million inflow from financing