Question: Question 2 (35 points) The recently opened Eurasia Tunnel is a BOD (Build - Operate and Deliver) type of project and here are some facts

Question 2 (35 points) The recently opened Eurasia Tunnel is a BOD (Build - Operate and Deliver) type of project and here are some facts about this: . Construction Period : 60 Months . Construction Cost : 1,245 Million US Dollars Operational Period: 24 years (288 Months) Daily guaranteed number of vehicles : 125,000 Charge per vehicle : 4 USD Monthly operational cost for the tunnel : 1 Million USD Assuming that the construction cost was spent equally during the construction period, and the benefits are collected monthly, starting the month after the end of construction period; determine the internal rate of return for the project breakeven point using monthly periods
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
