Company Buys A Factory With Debt (Years 1,2,3)

What happens when a company buys a factory with debt? There are three parts to this scenario that we'll cover:Start of Year 1 - purchase of the factory for $100 by raising debtStart of Year 2 - assume 10% interest rate on debt with no principal payoff, as well as assume 10% depreciationStart of Year 3 - assume complete write down of the factory to $0, and paying off the $100 loan in fullFor recruiting help, join the WSO Academy waitlist today!Contact: [email protected]