The figures for traffic flow (which is based on
parity of toll regime with the Lion Rock Tunnel), as well as
capital and operating costs have been assessed by
consultants and reviewed by Transport Branch as reasonable
and realistic.
Results of the base case
4.
Based on these assumptions, the base case, which is
based on zero royalty, gives the following criteria for the
project:
NPV @ 5%
$455 m
IRR
7.6%
5.
The NPV (Net Present Value) is a measure of the
total worth of the project expressed in today's dollars. A
positive NPV at 5% discount rate is considered to be a good
indicator that project of this nature is worthy of being
undertaken commercially.