Debt drawdown in cash flow for equity investor
Hi,
I had case study today where you acquire solar farm with 80% debt and 20% equity. For the Cash flow for equity investor in the first period there is huge cash flow - debt drawdown (80%) and then debt repayments and interest as cash outflows. It made XIRR function not working due to first cash flow being so much positive (then negative due to CAPEX investments). Is it correct approach?
Thanks!
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