How much do you need to borrow right now

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Your company is out of cash at the end of 2014. You have a credit line from which you can borrow right now. You have calculated your capital cash flows will be -500,000 for 2015. You will borrow now to cover your cash needs for both operations and interest for 2015. You will only borrow once right now in 2014. You have no other debt besides what you are borrowing on your credit line and your cash flow to equity holders will be 0 for 2015. How much do you need to borrow right now in order to cover your cash needs if the interest rate is 8%?

Reference no: EM132378184

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