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Assume total project cost is 500 Million rials to be depreciated on a straight line basis over a period of 20 years Debt Equity ratio

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Assume total project cost is 500 Million rials to be depreciated on a straight line basis over a period of 20 years Debt Equity ratio is Sox debt and 50% equity. Annual interest rate on outstanding debt 10%. Assume tax rate is 40%. Assume a year has 365 days.PPI is 4% Capacity Utilization 70% in year 1 85% in year 2 Total Capacity 100,000 meters per day Price per meter Rials Input cost per meter 4 Rials infiation for cable is 1996 Inflation rate for Inputs is 5% Escalation Factor PPI Operating and other 45 million per year Expenses per year 200 million in year 1 500 million in year 2 Repayment of Principal Answer the following Income from Operations after tax in year 2 Choose Cash Flow from Operations in year 1 Choose Interest Coverage Ratio in year i Choose Assume total project cost is 500 Million rials to be depreciated on a straight line basis over a period of 20 years Debt Equity ratio is Sox debt and 50% equity. Annual interest rate on outstanding debt 10%. Assume tax rate is 40%. Assume a year has 365 days.PPI is 4% Capacity Utilization 70% in year 1 85% in year 2 Total Capacity 100,000 meters per day Price per meter Rials Input cost per meter 4 Rials infiation for cable is 1996 Inflation rate for Inputs is 5% Escalation Factor PPI Operating and other 45 million per year Expenses per year 200 million in year 1 500 million in year 2 Repayment of Principal Answer the following Income from Operations after tax in year 2 Choose Cash Flow from Operations in year 1 Choose Interest Coverage Ratio in year i Choose

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