The firm's equity is $100m, and it borrows $300m (inclusive of rolled over interest during construction) at 4% interest for 7 years (i.e. Years 4 - 10). Provide an amortization table for the loan. (10 marks).

 

A firm wishes to tender for a Waste-To-Energy (WTE) plant that costs $400m to build. It makes some basic computations as follows: Sm Revenue Electricity Metals Gate fee Carbon credits Operating expenses Interest NOI Principal repayment Corporate tax Year 0 1-3 4 30 3 2 3 0 5 30 3 2 3 0 Cash flow -100 0 1. WTE plant can process 500,000 tons of waste per year. 2. Tax-free project. ... 3. The government will buy over the project at the end of Year 10 for $200m. 4. Construction period. Note: All figures are in nominal terms. 10 lala 30 3 2 0