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Previous question as mentioned

Task (following on from the previous part): Assume that the fund may borrow or lend money at 1.0% per annum. Determine whether or not the business venture is profitable, and find the profit or loss when the project ends in 50 years' time. Answer: It is clear that NPV(i) changes sign from [ Select] at io, as the outlays take place [ Select] income is generated. Hence, [Select ] and the project is [ Select ] . In fact, the profit in 50 years' time is [ Select] [Select ] positive to negative negative to positive [Select ] before after [Select ] 1% = i1 PO [Select ] profitable not profitable [ Select] NPV(i_1) (1 + i_1)^50 = 6.6774m NPV(i_1) (1 + i_0)^50 = 8.54753m NPV(i_0) (1 + i_1)^50 = 542.555 NPV(i_0) (1 + i_0)^50 = 694.508 For an investment ending at time T we denote the net cash flow at time t by Ct and the net rate of cashflow per unit time by p(t). The present time is t = 0 and time is measured in years. An infrastructure fund considers the construction of a new bridge. It estimates that the project will require an initial outlay of 22.475m = 22,475,000 and a further outlay of 10m after one year (m = million). There will be an estimated inflow of toll charges of 1m per annum payable continuously for 47 years, beginning at time t = 3. Task: Measuring time in years, select all the net cash flows associated with this venture: Task (following on from the previous part): Assume that the fund may borrow or lend money at 1.0% per annum. Determine whether or not the business venture is profitable, and find the profit or loss when the project ends in 50 years' time. Answer: It is clear that NPV(i) changes sign from [ Select] at io, as the outlays take place [ Select] income is generated. Hence, [Select ] and the project is [ Select ] . In fact, the profit in 50 years' time is [ Select] [Select ] positive to negative negative to positive [Select ] before after [Select ] 1% = i1 PO [Select ] profitable not profitable [ Select] NPV(i_1) (1 + i_1)^50 = 6.6774m NPV(i_1) (1 + i_0)^50 = 8.54753m NPV(i_0) (1 + i_1)^50 = 542.555 NPV(i_0) (1 + i_0)^50 = 694.508 For an investment ending at time T we denote the net cash flow at time t by Ct and the net rate of cashflow per unit time by p(t). The present time is t = 0 and time is measured in years. An infrastructure fund considers the construction of a new bridge. It estimates that the project will require an initial outlay of 22.475m = 22,475,000 and a further outlay of 10m after one year (m = million). There will be an estimated inflow of toll charges of 1m per annum payable continuously for 47 years, beginning at time t = 3. Task: Measuring time in years, select all the net cash flows associated with this venture