Overall, it should take three years to complete construction of the tunnel. The project would require the upfront purchase (t=0) of a $100 million Blade Digger, a huge machine to drill the tunnel. The Blade Digger has a useful life of five years, and can be depreciated at a rate of $20M/year. Based on our analyses, we anticipate that, at any point in time, The Blade Digger can be sold at book value. We expect annual construction expenses of $50M / year for 3 years (from t=1, 2, 3) and annual maintenance expenses of $25M [year throughout the 30-year life of the tunnel, with maintenance expenses to be paid beginning at time t=4. We expect that the tunnel has no salvage value at the end of its useful life. The NWC requirement during the construction phase of this project is $15M (from t=0, 1, 2). We anticipate a $5M NWC requirement from t=3 and on. We estimate that, throughout life of tunnel, about 3.5 million vehicles will use the tunnel per yeah Your relevant marginal tax rate is 35%, and based on the risks involved, the opportunity cost of capital is assessed to be 15%