An energy manufacturing firm is considering a new 8 Million Tonnes per Annum (MPTA) (1 Million Tonnes per Annum of NG = 0.13 billion cubic feet per day (BCF) of natural gas) natural gas terminal. Your task is to develop a financial model for the annual projected cash flows as well as a summary of the results.

You have been provided with the following information:

Team is targeting a tolling fee of $5 per MCF (1,000,000 MCF = 1 BCF) for 20 years

on 80% of the Terminal's capacity

At the end of the 20-year primary term the project is abandoned with no salvage for the terminal

It is estimated the project will cost $9B and can be constructed in one year, and construction will begin 2022

Following Operation Cost:

1) Other Operating Costs: $1130 MM per year

2) Annual Labor Cost: $1110 MM per year

3) Annual Maintenance Cost: $90 MM per year

I understand this is a NPV model for future cash flows. My questions about the problem are:

1. For the initial construction cost, will I discount that $9B back using the discount rate? or is the $9B already the PV for year zero.

2. How to I calculate the cash inflow using the statement "8 Million Tonnes per Annum (MPTA) (1 Million Tonnes per Annum of NG = 0.13 billion cubic feet per day (BCF) of natural gas)" and " Team is targeting a tolling fee of $5 per MCF (1,000,000 MCF = 1 BCF) for 20 years

on 80% of the Terminal's capacity"