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SEMESTER I
SESI 2016/2017
NAME
SYAZA SYAHIRAH BINTI MEOR ZAINAL
No Matric
P86665
Project cost
Duration
Cossesion peroid
Maintanance cost
First year toll
collection
Discound rate
Using Own Found
Repayment to
bank
Annual cost
1,250,000,
000
2
10
40,000,00
0
336,000,0
00
8
10
265.625
62500000
0
yea
rs
yea
rs
increa
se
increa
se
%per anum
% per anum
%
%
for
yea
rs
Yea
rs
Cost
Benefit
NPV Cost
NVP Benefit
Cost Stream
625,000,000.
00
625,000,000.
00
(625,000,00
0.00)
625,000,000.
00
578,703,703.
70
(625,000,00
0.00)
40,000,000.0
0
336,000,000
34,293,552.8
1
288,065,843.
62
296,000,000
.00
42,800,000.0
0
366,240,000.
00
33,976,019.9
2
290,733,119.
95
323,440,000
.00
45,796,000.0
0
399,201,600.
00
33,661,427.1
4
293,425,093.
28
353,405,600
.00
49,001,720.0
0
435,129,744.
00
33,349,747.2
6
296,141,992.
30
386,128,024
.00
52,431,840.4
0
474,291,420.
96
33,040,953.3
0
298,884,047.
78
421,859,580
.56
56,102,069.2
3
516,977,648.
85
32,735,018.5
5
301,651,492.
67
460,875,579
.62
60,029,214.0
7
563,505,637.
24
32,431,916.5
3
304,444,562.
04
503,476,423
.17
64,231,259.0
6
614,221,144.
59
32,131,621.0
0
307,263,493.
17
549,989,885
.54
Total
1,469,323,96
0.21
2,380,609,64
4.82
B/C ratio
1.620207462
IRR
(b)
(c)
Yea
rs
0
Cost
Benefit
Cost Stream
21.50%
625,000,000.00
(625,000,000.0
0)
625,000,000.00
(625,000,000.0
0)
40,000,000.00
42,800,000.00
366,240,000.0
0
323,440,000.0
0
45,796,000.00
399,201,600.0
0
353,405,600.0
0
49,001,720.00
435,129,744.0
0
386,128,024.0
0
52,431,840.40
474,291,420.9
6
421,859,580.5
6
56,102,069.23
516,977,648.8
5
460,875,579.6
2
60,029,214.07
563,505,637.2
4
503,476,423.1
7
64,231,259.06
614,221,144.5
9
549,989,885.5
4
Total
21.50%
336,000,000
296,000,000.0
0
2. An urban highway of 22 km long linking sub-urban area with the CBD will
be constructed. The cost of this project is estimated to be RM
950,000,000.00and project duration is 2 years. Estimated saving in vehicle
operating cost is 1,440,000 km-vehicle per day and saving in travel time is
about 30,400 man-hour per day. Average value of time is RM 13.50 per hour
and vehicle operating cost is about 20 sen per kilometer. Both savings are
forecasted to increase at the rate of 9% per annum. .Maintenance cost of the
road is estimated to be RM 3,000,000.00 per annulment will be increasing at
the rate of 10.5% per annum. The project will be financed using federal
government soft loan and repayment period is 12 years after the completion
of the project. Discounted rate is 8%.
(a) Compute NPV cost and NPV saving for the whole construction and
repayment period
(b) Compute Benefit Cost Ratio.
(c) Prepare computation table as in (a) with 30% discount rate and compute
Internal Rate of Return (IRR). (You can use cost stream method to calculate
IRR. In this case you dont have to compute NPV based on 30%discount rate).
(Assume a year is equal to 330 days and traffic flows are uniform throughout
the year).
Project cost
Duration
Vehicle operating
950,000,000
2
1,440,000
Travel time
Value time
Vehicle operating
Cost
30,400
13.50
Maintaining cost
Repayment
Discount Rate
Reduction in
operating cost
Reduction in travel
time
Total
0.20
3,000,000
12
10.5
years
per day
man-hour
per day
per hour
sen
Increase
Increase
% per
anum
% per
anum
years
%
Annual
Cost
475,000,000.0
0
698,400.00
Annual
total
collection
230,472,000.0
0
Benefit
NVP Cost
288000
9
10.
5
410400
(a)
yea
rs
0
Cost
475,000,000.
475,000,000
NVP Benefit
Cost Stream
(475,000,000
00
.00
.00)
475,000,000.
00
429,864,253
.39
(475,000,000
.00)
3,000,000.00
230,472,000
.00
2,456,952.1
5
188,752,892.
04
227,472,000.
00
3,315,000.00
251,214,480
.00
2,456,952.1
5
186,190,635.
58
247,899,480.
00
3,663,075.00
273,823,783
.20
2,456,952.1
5
183,663,160.
89
270,160,708.
20
4,047,697.88
298,467,923
.69
2,456,952.1
5
181,169,995.
81
294,420,225.
81
4,472,706.15
325,330,036
.82
2,456,952.1
5
178,710,674.
60
320,857,330.
67
4,942,340.30
354,609,740
.13
2,456,952.1
5
176,284,737.
84
349,667,399.
84
5,461,286.03
386,524,616
.75
2,456,952.1
5
173,891,732.
35
381,063,330.
72
6,034,721.06
421,311,832
.25
2,456,952.1
5
171,531,211.
10
415,277,111.
19
10
6,668,366.77
459,229,897
.16
2,456,952.1
5
169,202,733.
12
452,561,530.
38
11
7,368,545.28
500,560,587
.90
2,456,952.1
5
166,905,863.
44
493,192,042.
61
Total
929,433,774
.90
1,776,303,63
6.79
2
3
(b)
Total
929,433,77
4.90
B/C
1,776,303,63
6.79
1.911167514
IRR
25%
(c)
yea
rs
Cost
Benefit
Cost Stream
475,000,000.0
0
(475,000,000.
00)
475,000,000.0
0
(475,000,000.
00)
3,000,000.00
230,472,000.
00
227,472,000.
00
3,315,000.00
251,214,480.
00
247,899,480.
00
3,663,075.00
273,823,783.
20
270,160,708.
20
4,047,697.88
298,467,923.
69
294,420,225.
81
4,472,706.15
325,330,036.
82
320,857,330.
67
4,942,340.30
354,609,740.
13
349,667,399.
84
5,461,286.03
386,524,616.
75
381,063,330.
72
6,034,721.06
421,311,832.
25
415,277,111.
19
10
6,668,366.77
459,229,897.
16
452,561,530.
38
11
7,368,545.28
500,560,587.
90
493,192,042.
61
IRR
25%