Bond Street Partners (client) are keen to invest in a road project called Chelsea Highway in the Isle of Oxford. The client is responsible for all the capex, opex and other costs. They will have the right to collect the toll from the traffic. They have provided the mandate to conduct the financial feasibility of the project to Wigmore Advisors - a boutique corporate finance advisory firm.

You are the financial modeller with Wigmore Advisors, and are responsible for preparing an excel based financial model with annual granularity to evaluate the financial feasibility of the project.

Financial Modelling Exercise 1 Develop a financial model to evaluate the financial feasibility of the Chelsea Highway Project including each of the following for the entire Project: 1a Cash Flow Waterfall 1b Sources and Uses of Cash 1c Income Statement

1d Balance Sheet

2 Calculate the following at Project Level: 2a Pre-tax NPV 2b Post-tax NPV 2c Pre-tax IRR 2d Post-tax IRR

3 Calculate the following at Equity Level:

3a Post-tax NPV 3b Post-tax IRR

4 Calculate the following Debt Ratios:

4a DSCR 4b LLCR 4c PLCR

5 Please provide results for post-tax NPV and post-tax IRR at Project Level for the following sensitivity / scenario analyses: 5a Increase Pre-operating Capital Expenditure by 10 5b Increase Operating Expenditure by 10% 5c Decrease Traffic by 5% 5d Decrease Toll Rate by 5% 5e Increase Pre-operating Capital Expenditure and Operating Expenditure by 10%, decrease Traffic and Toll Rate by 5%