What effect will this have on cash flows to equity

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Reference no: EM131978351

- In the analysis, we assume that 40% of the initial investment comes from debt and that the entire debt principle gets repaid over the life of the mine. If you had assumed that only interest payments are made during the operating life of the mine and that the entire principle was repaid at the end of year 10, what effect will this have on cash flows to equity? Explain

? Increase cash flows to equity every year.

? Decrease cash flows to equity every year.

? Increase cash flows to equity in years 1-9 and decrease it in year 10.

Reference no: EM131978351

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