Infrastructure such as hospitals, highways, and utilities used to be built and financed by governments for the public good. More recently, with many governments running budget deficits and being unable to continue financing such public projects, a new form of financing public projects has become more and more popular. It is called PPP, short for public-private partnership, referring to a government service funded and operated through a partnership of govemment and one or more private sector companies. The most common form of PPP is a company called a special purpose vehicle (SPV) that is organized by the private sector companies. The SPV bids for a government project and signs a contract with the government if successful. The SPV would build and run the project just like a conventional project financed with capital from private sources. After several years, as promised in the contract with the SPV, the government would buy out the private sector's stake in the project by providing a one-time grant and taking over operations. The following information relates to an ongoing PPP: Discount rate 13% Compute NPV