Discuss briefly some of the financial market risks

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Reference no: EM13700999

Part A:

Questions

1. Based on the information provided in the case study, you are required to make a recommendation on the following:

a) The optimal capital structure,

b) Innovative means of financing the project, a rough debt maturity profile and proposed refinancing strategy after 5 years. Discuss the merits and limitations of each form of financing proposed.

2. Discuss briefly some of the financial market risks associated with the project. Consider:

Interest Rates, Currency and Commodity Risks if any. How can these be hedged using and what financial instruments do you propose to use, if any.

3. Develop a detailed NPV model in excel showing Cash Inflows, Cash Outflows and NPV of the project. What is the amount that you either expect to receive or are willing to pay the State Government to win this concession. Provide your arguments.

Reference no: EM13700999

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