Attached is the spreadsheet, and the course handout
- Compute for the NPV of the amount that the Government should get to keep the EquityIRR to 12%
- Modify the model to remove the negative cashflow in 2023 (explain how spreadsheet was modified).
- 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.