=6/A large oil company has been invited to get involved in a project to build a parking
Question:
=6/A large oil company has been invited to get involved in a project to build a parking facility in the centre of Frankfurt. The project includes a 450-car public parking lot, a 200-car garage and a petrol station covering 1000 sq.m. It will take one year to build, and a 30-year concession to run the facility will be granted by the municipality (after construction has been completed). Total capital expenditure will be €8 400 000 and working capital will be nil. The annual income statement for the project after the construction looks like this:
Costs Revenues Operating costs 670 000 Parking places 1 680 000 Depreciation and amortisation 280 000 Garage 770 000 Income tax expense 1 000 000 Petrol station 800 000 Net profits 1 300 000 3 250 000 3 250 000
Step by Step Answer:
Corporate Finance Theory And Practice
ISBN: 9781118849330
4th Edition
Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi