Equity funding

Hi All,

I am stuck in a situation and would request your guidance.

I am preparing an infrasture financial model in which The capex is $1 billion and Opex is $ 50 million

The life of the project is 15 year. The project is financed using debt and equity in the ratio of 70:30 The return on equity is assumed to be 30%.

The task is to determine the tariff and calculate the npv/irr

I would like to know how to incorporate the equity part in the project.

I know this is very generic, appologies for sounding dull

Thanks