Question: please I need solution to this question The free cash flow of a given project over a period of 10 years, from the total investment

 please I need solution to this question The free cash flow

please I need solution to this question

The free cash flow of a given project over a period of 10 years, from the total investment (banker's) perspective is given as below. In order to obtain the cash available to equity- holders work out the free cash flow waterfall statement based on the following capital structure. Regarding the cash sweep convention, the assumption is to allocate whatever cash remains after paying the debt service in each year; to prepay the outstanding principal of the highest rank debt outstanding in the following year. Year 1 2 3 4 5 6 7 8 9 10 Free cash flow (cash available for senior debt) -200 65 67 69 72 74 77 80 85 100 Senoir Debt: 100 Million USD loan with a 5 year tenure, dispersed in year 1. Bearing 8% interest with fixed equal principal annual repayments over 5 years. Mezzanine Debt: 90 Million USD loan with a 6 year tenure, dispersed in year 1. Bearing 12% interest with fixed equal principal annual repayments over 6 years. 10 Million USD with a target rate of return of 17 percent. Equity: Please also calculate the annual debt service coverage ratios for the senior and mezzanine debt over the whole period and interpret the numbers you find. The free cash flow of a given project over a period of 10 years, from the total investment (banker's) perspective is given as below. In order to obtain the cash available to equity- holders work out the free cash flow waterfall statement based on the following capital structure. Regarding the cash sweep convention, the assumption is to allocate whatever cash remains after paying the debt service in each year; to prepay the outstanding principal of the highest rank debt outstanding in the following year. Year 1 2 3 4 5 6 7 8 9 10 Free cash flow (cash available for senior debt) -200 65 67 69 72 74 77 80 85 100 Senoir Debt: 100 Million USD loan with a 5 year tenure, dispersed in year 1. Bearing 8% interest with fixed equal principal annual repayments over 5 years. Mezzanine Debt: 90 Million USD loan with a 6 year tenure, dispersed in year 1. Bearing 12% interest with fixed equal principal annual repayments over 6 years. 10 Million USD with a target rate of return of 17 percent. Equity: Please also calculate the annual debt service coverage ratios for the senior and mezzanine debt over the whole period and interpret the numbers you find

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