Question: please i need it in 1 hours pls FYI: Minimum monthly rent of each shop is first 2 digits which is = 16. Also: Rent

QUESTION 1: (30 Points) A construction company is planning to sign a Build, Operate and Transfer (BOT) contract with Turkish Government for the construction and operation of a Duty Free Shopping center composed of 120 shops in the second phase of Istanbul Grand Airport Project. The Duty Free Shopping Center will be transferred to Turkish Government at the end of 20 years of operation. Some figures with respect to proposed BOT agreement is as follows: a. Initial construction cost for 120 shops is $500,000. b. Maintenance per shop per month is $50. c. Each shop should pay $50,000 of tax to Turkish Government yearly. d. Additional tax surcharge is demanded by the Turkish Government for the entire Duty Free Shopping Center (120 shops) every 6 years, payment of $30,000 is to be paid. e. Within the first 10 years of operation, Turkish Government is demanding a fixed fee from the revenue from each shop. This fee is $100,000 per month. At the end of 10 years, this fee increases to $150,000 per shop per year until the contract fulfills its duration of 20 years. Subsequent to completion of the Duty Free Shopping Center, the construction company is planning to rent out the 120 shops to generate an income. In line with the figures given above, what should be the minimum monthly rent of each shop in order to obtain the breakeven point if the desired discount rate is (First two digits of your student number) %. i.e: If your student number is 165001, that means the desired discount rate is 16%. c. Each shop should pay $50,000 of tax to Turkish Government yearly. d. Additional tax surcharge is demanded by the Turkish Government for the entire Duty Free Shopping Center (120 shops) every 6 years, payment of S30,000 is to be paid. e. Within the first 10 years of operation, Turkish Government is demanding a fixed fee from the revenue from each shop. This fee is $100,000 per month. At the end of 10 years, this fee increases to S150,000 per shop per year until the contract fulfills its duration of 20 years. Subsequent to completion of the Duty Free Shopping Center, the construction company is planning to rent out the 120 shops to generate an income. In line with the figures given above, what should be the minimum monthly rent of each shop in order to obtain the breakeven point if the desired discount rate is (First two digits of your student number) %. i.e: *If your student number is 165001, that means the desired discount rate is 16%. You must consider in your analysis that during the 20 years of operation, on average 85% of the shops are rented, and (summation of last two digits of your student number )% of the rent income will be paid back to government Le: *If your student number is 165002 that means 0+1 -1% of total rent income will be paid back to government
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