Question: 1 A small bridge project is being set up by Bridge Tech Corp are now o years. $12,000,000. The project will be operational in one
1 A small bridge project is being set up by Bridge Tech Corp are now o years. $12,000,000. The project will be operational in one year. Once operational, Bridge Teck $3,000,000 annually from Sunpass instead of charging tolls. Sunpass will keep the charged. Bridge Tech has a 6% cost of capital. Calculate NPV to connect six islands in the Florida Keys that nly accessible by boat. Bridge Tech Corp will turn over their bridges to Monroe County in five In return, Monroe County is prepaying them $ 4,000,000. The construction cost of the project is will receive difference of the tolls 2 Calculate IRR using the information from question 1. 3 Continue using the information from Question 1. Bridge Teck is thinking of keeping the $1.00 per vehicle tolls, instead of exchanging the tolls for an annual lumpsum from Sunpass. What would be Break Even in A) units and B) dollars, if the variable cost per car is $.25 (25 cents) per toll
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