Calculate the npv and find the irr of a project as an all


1. Calculate the NPV and find the IRR of a project as an all equity project with the following assumptions:

  • Construction cost - $4.8 Billion spread over four years
  • Annual Increase in tolls - 2%
  • Annual Increase in traffic - 2%
  • Operating and Mainenance costs - 10% of Revenue
  • Years of Operations - 100 years

2. Assume 20% equity and 80% financing with 3.75% interest only payments. Calculate the return on the equity investment.

 

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Finance Basics: Calculate the npv and find the irr of a project as an all
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