Yashodha, Correct answer is the first choice -
Oct 30 2012 06:53 PM
First cash flow from financing will increase by $200mn due to the loan (cash inflow), then in the same period cash flow from financing will decrease by $20mn due to the interest payable (cash outflow). Hence net of $200mn inflow - $20mn outflow is $180mn.
Then since money is being spend on the building cash flow from investing will decrease by $200mn.
Is that clear?