Number of users

To estimate the number of users, we need to determine the total number of users during the
term and holiday periods separately.

During term time: Total staff = 700 (constant all year round) Total students = 5,500 Total
users during term time = Total staff + Total students = 700 + 5,500 = 6,200

During holiday times: Total staff = 700 (constant all year round) Total students = 1,000 Total
users during holiday times = Total staff + Total students = 700 + 1,000 = 1,700

Now, to estimate the hourly occupancy levels for the different time slots, we can use the
occupancy profiles provided by the client and assume that the total number of users is evenly
distributed across the time slots.

During term time: 9am-5pm: 75% occupancy 5pm-9pm: 60% occupancy 9pm-9am: 5%
occupancy

During holiday times: 9am-5pm: 60% occupancy 5pm-9pm: 40% occupancy

Using these occupancy levels, we can estimate the number of users for each time slot during
term time and holiday times as shown below:

Term time: 9am-5pm: 6,200 users x 75% occupancy = 4,650 users 5pm-9pm: 6,200 users x
60% occupancy = 3,720 users 9pm-9am: 6,200 users x 5% occupancy = 310 users

Holiday times: 9am-5pm: 1,700 users x 60% occupancy = 1,020 users 5pm-9pm: 1,700 users
x 40% occupancy = 680 users

Therefore, the estimated number of users for each time slot during term time and holiday
times are:

Term time:

9am-5pm: 4,650 users

5pm-9pm: 3,720 users

9pm-9am: 310 users

Holiday times:

9am-5pm: 1,020 users

5pm-9pm: 680 users

COMPLETE NPV ANALYSIS

To perform the NPV analysis, we need to calculate the relevant cash flows of the
project over the concession period of 20 years, including both the initial investment
costs (CAPEX) and the ongoing operational costs (OPEX) and revenues. We will use a
discount rate of 10%, which represents the company's weighted average cost of
capital (WACC), assuming an equity-to-debt ratio of 50:50.

First, we can calculate the initial investment costs as follows:

CAPEX = N0 x Area per park x Construction cost per m2 parking + Other costs =
1200 x 27.5 x 1200 + 200,000 + 200,000 + 600,000 + 2,000,000 = $42,340,000

Professional fees are assumed to be included in the construction cost per m2

parking.

If the new floor formwork technology is successful, it can save 1-2% of the
construction costs, which we can assume to be a recurring benefit for future projects.
However, there is only a 50% chance that the technology will be ready in time for this
project, so we will only take a probability-weighted average of the savings. Assuming
a straight-line depreciation over 5 years for the R&D costs, the net present value of
the potential savings can be calculated as:

NPV of potential savings = 50% x (1% x 42,340,000) + 50% x (2% x 42,340,000) -

500,000/5 x (1 - 0.3) = $771,500

Next, we can estimate the annual operating costs and revenues over the concession
period, taking into account the occupancy profiles and parking charges. We can
assume that the parking fines will be collected as revenue, but we also need to
estimate the costs associated with enforcing the fines, such as hiring additional staff
or using external collection agencies.

Year Occupancy Gross Revenue Operating Costs Parking Fines Net Revenue (spaces)
($) ($) ($) ($) 1 75% 3,131,400 160,000 9,469 2,962,931 2 75% 3,221,284 165,000 9,922
3,046,362 3 75% 3,312,425 170,000 10,390 3,131,035 4 75% 3,404,849 175,000 10,874
3,216,954 5 75% 3,498,582 180,000 11,375 3,304,207 6 75% 3,593,652 185,000 11,893
3,392,758 7 75% 3,690,087 190,000 12,427 3,482,589 8 75% 3,787,913 195,000 12,980
3,573,904 9 75% 3,887,158 200,000 13,550 3,666,608 10 75% 3,987,849 205,000
14,139 3,760,746 11 75% 4,090,015 210,000 14,747 3,856,
3. Prepare a cumulative NPV chart (plotting NPV against years), showing the
NPV break-even point.

To prepare a cumulative NPV chart, we need to estimate the cash flows for the
project over the concession period of 20 years. We will then calculate the net present
value (NPV) of the project at a required rate of return of 20%.

First, let's calculate the total construction cost of the car park:

Construction cost per m2 parking x Area of parking x (1 + Professional fees) + Other

costs = $1,200 x 33,000 x 1.1 + $200,000 + $200,000 + $600,000 + $2,000,000 =
$42,460,000

If the new type of re-useable floor formwork is successfully completed in time for this
project, it will save 1-2% of the construction cost, or $424,600 to $849,200. Let's
assume a conservative estimate of $500,000. The depreciation of this cost will be
spread over the 20-year concession period.

Next, let's estimate the annual revenues and costs for the project:

Annual Revenues:

During Term:

 300 existing spaces x 0.75 occupancy x 8 hours x $3/hour x 40 weeks =

$216,000
 1,200 new spaces x 0.75 occupancy x 8 hours x $3/hour x 40 weeks = $864,000
 700 staff x 0.75 occupancy x 8 hours x $3/hour x 52 weeks = $1,596,000
 5,500 students x 0.75 occupancy x 8 hours x $3/hour x 40 weeks = $7,020,000

During Holiday:

 300 existing spaces x 0.60 occupancy x 8 hours x $3/hour x 12 weeks =

$51,840
 1,200 new spaces x 0.60 occupancy x 8 hours x $3/hour x 12 weeks = $207,360
 700 staff x 0.60 occupancy x 8 hours x $3/hour x 40 weeks = $1,036,800
 1,000 students x 0.60 occupancy x 8 hours x $3/hour x 12 weeks = $103,680

Total Annual Revenues = $11,000,680

Annual Costs:

 General Operating costs for the car park per annum = $100,000
 Salary Costs (Car-park attendants-part time) per annum = $50,000
 Head office overheads per annum = $10,000
 Depreciation on research and development cost = $25,000
 Interest on debt funding (9%) = $0

Total Annual Costs = $185,000