Airport Finance Project

1. Prepare a cash flow for Memphis international airport for 20 years showing amounts coming in from the FAA, State and other amounts needed to pay costs to construct.Assume all events happen in yearly time units.2- Your answer must be in Excel spreadsheet.3- Make your answer clear and easy to track. Write a formula that you will be used.Airport Financial ProjectBasic InformationTotal Cost $200,000,000TimelineDesign – 2016 1 YearDemolition -2017 1 YearConstruction – 2018-2020 3 YearsTotal Time 5 YearsDesign – 10% of Total Cost $20,000,000Demo – 5% of Total Cost $10,000,000Total Cost of Construction $170,000,000Square Footage Terminal B OldConcourse Level (Ticket Counter/Gates) 175,000Apron Level (Operations) 100,000Square Footage Terminal B NewConcourse Level (Ticket Counter/Gates) 300,000Apron Level (Operations) 100,000Total Square Footage of New Concourse 400,000.00Public Area – 1/3 of new Concourse area.FundingFAA (Federal) – 75% FAA/25% Airportof public area.State – remaining amounts at a 90% state/10% Airport.Both Federal and State grants are limitedto $5 million each/year.Inflation 2%Interest paid on borrowing 3%Question:1. Prepare a cash flow for 20 years showingamounts coming in from the FAA, State andother amounts needed to pay costs to construct.Assume all events happen in yearly time units.