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.