Question: From the given below data, estimate the following: Loan Life Cover Ratio (LLCR) at year zero/the beginning of year 1 Project Life Cover Ratio

From the given below data, estimate the following: Loan Life Cover Ratio 

From the given below data, estimate the following: Loan Life Cover Ratio (LLCR) at year zero/the beginning of year 1 Project Life Cover Ratio (PLCR) at year zero/the beginning of year 1 Is this project financially viable? Year Year Beginning Year End Particulars Cash Flow Available for Debt Service (CFADS) at the end of the year Debt balance at the beginning of the year Debt balance at the end of the year Interest Paid on Debt @ 8 % p.a. at the end of each year Principal Repayment Debt Service Obligation (Interest + Principal) Equity balance at the beginning of the year Equity balance at the end of the year Yearly corporate tax rate 0-1 01-Jan- 07 31-Dec- 07 100 Construction Period 200 - 50 50 (in Million) 1-2 3-4 4-5 01- 01- 01- 01- Jan-08 Jan-09 Jan-10 Jan-11 20% 31- Dec- 08 200 200 1 50 50 2-3 31- Dec- 09 100.5 100.0 200 ? ? ? ? 50 31- Dec- 10 50 ? ? ? la. ? ? 50 50 20% 20% 20% 31- Dec- 11 101.0 ? Operating Period ? ? ? ? 50 50 5-6 20% 01- Jan-12 31- Dec- 12 100.5 ? lo. ? la ? ? ? 50 50 6-7 01- Jan-13 31- Dec- 13 1 101.0 102.0 1 1 1 50 50 7-8 01-Jan- 14 20% 20% 31- Dec-14 i 1 1 1 1 50 50 20%

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