Question
PROJECT FINANCE AND COST MANAGEMENT!! PLEASE ANSWER CORRRECTLY! You have been approached by your companys business enablement team to calculate the initial affordable capital for
PROJECT FINANCE AND COST MANAGEMENT!!
PLEASE ANSWER CORRRECTLY!
You have been approached by your companys business enablement team to calculate the initial affordable capital for a business case that produce the following nett cashflow.
Year 1 $16m
Year 2 $12m
Year 3 $18m
Year 4 $17m
4% yearly increase on the Year4 value from Year 5 up to Year 10
IRR must be equal to16.5%
The project team identified that the project would take 1 year to construct. No salvage value is to be considered. Calculate and show cashflow, WACC if company require 8% premium on return, accumulative cashflow, year of breakeven and NPV. Answer in US$(m).
PLEASE ASNWER CORRECTLY AND IN DETAIL!
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