Question
I need help with Question 3: Question 1 is already answered in Chegg: Question 1 A small bridge project is being set up by Bridge
I need help with Question 3:
Question 1 is already answered in Chegg:
Question 1 A small bridge project is being set up by Bridge Tech Corp to connect six islands in the Florida Keys that are now only accessible by boat. Bridge Tech Corp will turn over their bridges to Monroe County in five years. In return, Monroe County is prepaying them $ 4,000,000. The construction cost of the project is $12,000,000. The project will be operational in one year. Once operational, Bridge Teck will receive $3,000,000 annually from Sunpass instead of charging tolls. Sunpass will keep the difference of the tolls charged. Bridge Tech has a 6% cost of capital. Calculate NPV .Calculate IRR using the information from question 1.
Question 3 - This is the one i need help with***
Continue using the information from Question 1. Bridge Teck is thinking of keeping the $1.00 per vehicle tolls, instead of exchanging the tolls for an annual lumpsum from Sunpass. What would be Break Even in A) units and B) dollars, if the variable cost per car is $.25 (25 cents) per toll?
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