You have been asked to analyze the net present value of building a toll road in Asia.
Fantastic news! We've Found the answer you've been seeking!
Question:
Now assume that you believe that you can double your cash flows for the next 6years in the toll road investment described in problem 6, if you cut back on maintenance. If you do this, though, you will no longer be able to operate it as a toll road after year 6 and will have to sell it to the government for $30 million. Assuming the cost of capital remains at 7%, what is the NPV of the project to you?
Related Book For
Posted Date: