An infrastructure development project has a construction cost of $125 million. The annual CFADS, in $ million
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An infrastructure development project has a construction cost of $125 million. The annual CFADS, in $ million over a 10 year project life staring at year 1, are 20, 25, 13, 14, 21, 33, 18, 16, 21, and 19. The project is funded by $25 million of equity with a required rate of return of 11% p.a. and $100 million debt with an interest rate i=8% p.a. and a loan term of 10 years.
Calculate the average life of the loan, loan coverage ratio, and the payback period for the equity investment for the following scenarios:
1. The target debt service coverage ratio is 1.34.
2. The sweep ratio is 0.37
3. The total debt payment raio is 1.25
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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