Business

FinanceQ&A Library1. This project must fund the construction of an on/off-interchange from an adjacent highway, a 2-mile length of 4-lane divided roadway, and a bridge that will cross a 500-foot wide river. The entire project is estimated to require 2 years to complete following planning & design.a. The interchange is projected to cost $50 million. It will need to begin construction in 18 months. Rights-of-way acquisition, surveying, and permitting have already been completed and paid for by the program. There will be 2 additional project phases: 1) planning & design, 2) construction. Each will require payment at the end of the phase. The projected cost of the 1st phase of the project is $2.5 million. The 1st phase is expected to need the entire 18 months prior to the start of construction and must be completed before construction can begin. The 2nd phase is projected to cost the remaining $47.5 million. It is expected to be completed at the end of the 2-year period following planning & design. Assuming a discount rate of 4.25% and monthly compounding, what amount will need to be funded today to meet the complete project’s funding requirements on the payment due datesQuestion

1. This project must fund the construction of an on/off-interchange from an adjacent highway, a 2-mile length of 4-lane divided roadway, and a bridge that will cross a 500-foot wide river. The entire project is estimated to require 2 years to complete following planning & design.

a. The interchange is projected to cost $50 million. It will need to begin construction in 18 months. Rights-of-way acquisition, surveying, and permitting have already been completed and paid for by the program. There will be 2 additional project phases: 1) planning & design, 2) construction. Each will require payment at the end of the phase. The projected cost of the 1st phase of the project is $2.5 million. The 1st phase is expected to need the entire 18 months prior to the start of construction and must be completed before construction can begin. The 2nd phase is projected to cost the remaining $47.5 million. It is expected to be completed at the end of the 2-year period following planning & design. Assuming a discount rate of 4.25% and monthly compounding, what amount will need to be funded today to meet the complete project’s funding requirements on the payment due dates

Find answers to questions asked by students like you.

Q: investment QUICK AND SLOW COST $1,000 each, are mutually exclusive, and have the following cash flow...

A: All the financials shown in the solution are in $. Figures in parenthesis mean negative values.The f...

Q: Decide whether the following statement makes sense (or is clearly true) or does not make sense (o...

A: The correct answer is “Statement B”.

Q: What impact do bond ratings have on the cost of debt to the issuing firm?

A: Bond Ratings: It is the ratings that portrayals of the reliability of corporate or government bonds....

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business dec...

Q: Energetic Engines is trying to estimate its cost bonds that pay $20 interest every six months. Each ...

A: Calculating the value of bond yield. We have,Bond yield = Coupon Payment / Face value of bondHere,Co...

Q: In a case that A firm's cost of capital is 12 percent. The firm has three investments to choose amon...

A: NPV is calculated using following formula.

Q: a firm has an a profit margin of 3.8% and an equity multiplier of 1.90. its sales are 166.0 mil usd,...

A: Using Dupont's ROE decomposition formula,ROE = Net income / Equity = Net income / Sales x Sales / To...

Q: Your oldest daughter is about to start kindergarten in a private school. Tuition is $10,000 per yea...

A: Calculation of Present Value:There are 2 issues with the annuity. The one with the current tuition f...

Q: NoGrowth Corporation currently pays a dividend of $2.08 per year, and it will continue to pay this ...

A: Cost of Equity: It is the cost of the company while raising finance by issuing equity. It is earning...