THE SARAVINA AIRPORT AUTHORITY ACTIVITIES

The Public Entreprise Airport (PEAS) is currently in charge of different airport activities In order to extend its activities some investments will be necessary. <Tab/>That's why the following case study presents different situations of investment through different programs: - Program 1: Program requiring a minimum investment (=More security), but with low return. - Program 2: Program requiring an higher investment (=More risks), but with a considerable return. Each program includes two different …

…Program 2 <Tab/>Optimistic investment Low traffic<Tab/>Optimistic investment High traffic Net present value<Tab/>- 8,896.46<Tab/>9,347.92 Payback period<Tab/>14 years<Tab/>9 years Internal rate of return<Tab/>4.05 %<Tab/>11,83 % Rate of return<Tab/>- 0,2090<Tab/>0,2748