SUMMARY
The paper aimed to analyze the impact of borrowings upon economic profitability at PRO ACVA SA in order to establish the right decision to apply for additional financing. Starting from Euro 1,708,694 shareholders equity and Euro 206,587 profit at the end of the year 2008 , the ration between economic profitability and interest rate were studied , using two types of simulation variants as follows: VA – interest rate 18 % and VB – interest rate 11 %. For each variant , three alternatives of borrowing level were studied : V1-Euro 1,300,000 , V2-Euro 2,500,000 and V3 –Euro 3,500,000. The results have proved that the variant VB could be accepted , because the company could get additional profit of Euro 14,164 for V1, Euro 27,244 for V2 and Euro 38,144 for V3 under a higher economic profitability as follows: 12.92 % for V1, 13.68 % for V2 and 14.32 % for V3. Therefore, the higher the borrowing level, the higher the economic impact if the interest rate is lower than the profitability rate.