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In 2006, under Governor Mitch Daniels, the State of Indiana leased its 157-mile Indiana East-West Toll Road to an international consortium of investors for an
In 2006, under Governor Mitch Daniels, the State of Indiana leased its 157-mile Indiana East-West Toll Road to an international consortium of investors for an upfront payment of $3.8 billion, plus investment of $600 million during the first nine years of the lease. [file] Draw the cash flow diagram that describes the payments made to the State. 7 [text] Suppose the private investment firm that leased the Indiana Toll Road is seeking an 8% internal rate of return (IRR) over the 75 year lease period. How much annual profit must they make over this period to achieve their IRR goal? Create a graph showing the sensitivity of required revenues for the Tool Road investment firm versus internal rate of return. Label your axes. [file] In 2006, under Governor Mitch Daniels, the State of Indiana leased its 157-mile Indiana East-West Toll Road to an international consortium of investors for an upfront payment of $3.8 billion, plus investment of $600 million during the first nine years of the lease. [file] Draw the cash flow diagram that describes the payments made to the State. 7 [text] Suppose the private investment firm that leased the Indiana Toll Road is seeking an 8% internal rate of return (IRR) over the 75 year lease period. How much annual profit must they make over this period to achieve their IRR goal? Create a graph showing the sensitivity of required revenues for the Tool Road investment firm versus internal rate of return. Label your axes. [file]
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