CS 197: Lecture on P2P

Attached is the spreadsheet, and the course handout

 

 

Assignment

  1. Compute for the NPV of the amount that the Government should get to keep the EquityIRR to 12%
  2. Modify the model to remove the negative cashflow in 2023 (explain how spreadsheet was modified).
  3. Compute for the minimal fare so that the EquityIRR will be reduced to 12%

Put your answers on a 1/4 sheet of yellow paper. To be submitted before class hours on Thursday. Be prepared to demonstrate how the answer was obtained.