Find the irr of a project as an all equity project

Assignment Help Finance Basics

Reference no: EM13264670

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.

Reference no: EM13264670

Questions Cloud

What pressure does each leg exert on the floor : A large man sits on a 4-legged chair with his feet off the floor. The combined mass of the man and chair is 95.0 kg.what pressure does each leg exert on the floor

What is qm weighted average cost of capital : If the cost of common equity for the firm is 18.9%, the cost of preferred strock is 9.3%, the before-tax cost of debt is 7.9% , and the firm's tax rate is 35%,what is QM's weighted average cost of capital?

Calculate the electric field intensity : Calculate the electric field intensity at a distance of 14 cm from the center of the shell

What is the effective cost of borrowing in this case : Your firm has an average collection period of 27 days. Current practice is to factor all receivables immediately at a 1.70 percent discount.

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

How does body adornment function in pacific cultures : How does body adornment function in Pacific cultures? Discuss as many specific examples of the different forms of body ornamentation introduced in this chapter as possible as you develop your answer to this essay question.

Calculate the mass of a solid gold rectangular bar : Calculate the mass of a solid gold rectangular bar with dimensions 3.50 cm x 14.0 cm x 27.0 cm. Density of gold is 1.93E4 kg/m^3

Explain gases deviate most from behavior of ideal gas : Which of the following gases deviate most from behavior of ideal gas: CO2, O2, He, N2, CH4

Difference between magic-science and religion develop : How did the difference between magic, science and religion develop? Can we assume that the categories of magic, science and religion are present in all cultures? Critical approach to sources for the study on magic in the ancient world.

User Account

All Pages