1. A colleague and you are discussing the possibility of developing a toll road to bypass several congested interchanges in a metropolitan area. Rough estimates of the projects traffic, tolls and expenses along with assumptions are listed below:

Item	Value
Development & Construction Costs in Year 1	$30,000,000
Annual Operations & Maintenance Costs starting in Year 2	$400,000
Total Annual Traffic starting in Year 2	750,000 vehicles
Toll Charged starting in Year 2	$4.50
O&M growth rate	3%
Traffic growth rate	2%
Toll growth rate	2%

If the discount rate is 15% and the period of analysis is 10 years, what is the present value of developing this project?

please show the formulas when doing excel. many thanks