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3. A company called American Roads paid $500 million for the rights to a toll road through the Florida panhandle for the next 30 years.

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3. A company called American Roads paid $500 million for the rights to a toll road through the Florida panhandle for the next 30 years. The company expects traffic of 8 million vehicles for each of the first 5 years, 12 million for cach of the next ten, and then 15 million for each of the remaining 15 years of the project. The firm plans to charge a toll of S4 a vehicle. Calculate the payback, IRR, and NPV for the toll roads. Assume a discount rate of 4%. 30 points What rate per vehicle would have to be charged to get an IRR of 10%? 10 points

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