Please value the following investment from the company's perspective using a spreadsheet.
Assume the valuation date is 31st December 2022. Use annual periods.
Asset and Operational information
- $100M asset
- Construction period - 1 year, ending 31st December 2023
- Assume full payment due at the end of construction
- Operational lifetime - 20 years
- Revenue is fixed at $19 million/year
- Operational Expenses: $3M in the 1st year after commissioning, $5.5M year 2+
- Maintenance Expenses: $0M in the 1st year after commissioning, $2M year 2+
- 50% debt funded
- Straight-line depreciation
- No working capital
- No terminal value
WACC is 5.9%
In preparing your valuation, please use any resources at your disposal and provide details of the resources utilized when submitting your answer.