Question: ORPIC SAOG's is planning a new cable manufacturing project for which they established a Joint Venture with Euro Cables PLC The project will be

ORPIC SAOG's is planning a new cable manufacturing project for which they established a Joint Venture with Euro Cables PLC The project will be constructed in three years and will run for 10 years after completion. The joint venture plans to raise long term debt from the Euro market in Euros. In Omani Rials Construction Cost Year1 55 million Construction Cost Year 2 45 million Construction Cost Year3 60 million Preconstruction Cost 5 million Fee for arranging Interest Rate Swap 1.6 million Fee for arranging Bank Loan 1.5 million Unused Balances to cover cost over-runs 40 million Commitment Fees for Unused Balances 1.4 million Interest Expenses in Year1 25 million Interest Expenses in Year 2 million Interest Expenses in Year 3 8 million Interest Expenses from Year 4 to 10 40 million CALCULATE TOTAL EXPECTED PROJET COST Select one Unused Balances to cover Cost o 1.4 millio Commitment Fees for Unused Balances 2.5 millior Interest Expenses in Year1 Interest Expenses in Year 2 5 million Interest Expenses in Year 3 8 million Interest Expenses from Year 4 to 1o 40 million CALCULATE TOTAL EXPECTED PROJECT COST Select one: O a. None of these Ob.185 O C 265 O d. 260 e. 225
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The correct answer for above given question is option c ie 265 million which is the total of all the ... View full answer
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