A local government authority is considering how to finance a project to build a road bridge that will connect a large Scottish island to the mainland. It is expected that construction of the bridge will take two years, at a cost of £5 million per year, payable quarterly in advance. Once constructed, the bridge will incur operating and maintenance costs totalling £0.75 million per year, payable continuously, and will generate revenue from a toll (charge) of £T per vehicle for each single crossing of the bridge. It is estimated that there will be 1.5 million single crossings of the bridge in each year of operation, uniformly distributed during the year. The toll is expected to be reduced to £U after the first ten years of operation of the bridge, a level that will generate revenue equal to twice the continuing operating and maintenance costs each year. Using the bank interest rate at 4% per annum effective that allows for full or partial repayment of the loan at any time, the present value of the construction cost is £9,665,079.40. the Value of T such that the DPP of the project is 12 years is £1.34. The value of U is £1.00. The present value of the profit (revenue less costs) at the start of the project, using the bank borrowing rate, assuming DPP is 12 years and that the term of the proejct is infinite is £11,943,887.54. An alternative method of financing the project has been proposed: form a special purpose company to issue ten million ordinary shares, each of price £P, to raise capital equal to the present value of the construction costs stated previously. Dividends on these shares are expected to be paid annually in arrear and to grow at a compound annual rate of 2% in perpetuity. The value of P is £0.97. if shareholders are to achieve an expected annual yield of 8% per annum effect, the amount of the first dividend per share is £0.06. based on the information and context provided please answer the following question: The above model for the project, and the suggested methods of financing, involve various assumptions, expectations, and limitations. Identify, discuss, and investigate these, using a spreadsheet to explore the impact of changing these aspects in order to make the model and financing more realistic, and take note of the corresponding risks.