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Al-Sawahrih bus company intend to buy a bus cost $300,000. The AB will lend the money at 10%. The company will depreciate the bus over 10 years, but the company believe that they can sell it for $30,000 after 10 years. The bus will operate between Abu- Deis and Jerusalem. The bus needs a $2000 yearly maintenance. Solar $100 per day. The bus will operate 365 day per year. The company needs to employ driver with monthly salary $1500. The company think that the bus can travel 300 passengers per-day on average, each ticket $1.5 (calculate the revenue yearly). The company pay 30% tax rate Note: make sure to change all the number to yearly Calculate: What is the expected yearly revenue (2pt) Build an Income statement for the project (4pt) Calculate the free Cash flow- use the comments as needed (2pt) Calculate Capital Gain/ Loss after tax. (3pt) Calculate IRR: What does this figure tell you- use the comments to answer (3pt) Calculate NPV for the project What do you learn from NPV (3pt) Make a decision based on NPV (2pt) Draw NPV vs. Interest rate- write the appropriate comments on the graph. (4pt) Build an appropriate sensitivity analysis -What is your conclusion based on the sensitivity analysis (5pt) Use Goal Seeker to calculate the min number of basengers that the bus needs to

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