Elon Musk's The Boring Company wants to invest in al subway to be constructed in Metro...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Elon Musk's The Boring Company wants to invest in al subway to be constructed in Metro Manila to decongest the heavy traffic in the capital through the Public-Private Partnership program of the government. His Tunneling Engineers proposed 2 options namely, the Maglev train and the Bullet train. During operation, they will perform equally well in terms of speed, however they are mutually exclusive alternative. If the Minimum Attractive Rate of Return is 10%, using Present Worth Analysis and coterminated assumption with analysis period of 12 years, what train should be chosen? Capital Investment Annual revenues Annual increase Annual costs Useful life Market Value Maglev train $46,100,000 $10,800,000 $100,000 $2,500,000 8 $2,200,000 Bullet train $75,000,000 $14,500,000 $115,000 $1,000,000 12 $5,300,000 Elon Musk's The Boring Company wants to invest in al subway to be constructed in Metro Manila to decongest the heavy traffic in the capital through the Public-Private Partnership program of the government. His Tunneling Engineers proposed 2 options namely, the Maglev train and the Bullet train. During operation, they will perform equally well in terms of speed, however they are mutually exclusive alternative. If the Minimum Attractive Rate of Return is 10%, using Present Worth Analysis and coterminated assumption with analysis period of 12 years, what train should be chosen? Capital Investment Annual revenues Annual increase Annual costs Useful life Market Value Maglev train $46,100,000 $10,800,000 $100,000 $2,500,000 8 $2,200,000 Bullet train $75,000,000 $14,500,000 $115,000 $1,000,000 12 $5,300,000
Expert Answer:
Answer rating: 100% (QA)
The Maglev train should be chosen because it has a lower capital investment and a higher market va... View the full answer
Related Book For
Contemporary financial management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
Posted Date:
Students also viewed these finance questions
-
An investor has $10,000 that she wants to invest in Microsoft Corporation. She can either go long in Microsoft's stock at a spot price of $25 per share or purchase option contracts for $4 per share...
-
If you were planning to invest in a company, which of the three types of financial statements would you most want to see? Why?
-
If you were planning to invest in a company, which of the three types of financial statements would you want most to see? Why?
-
Our first set of questions is related to some basic exercises from the required prerequisite background in mathematics (Calculus I and Discrete Math). You should feel very comfortable doing these....
-
1. What are some of the political risks that Adams firm will face if he decides to go ahead with this venture? Identify and describe two or three. 2. Using Figure 103, what strategy would you...
-
Sketch the following systems on a number line and find the location of the center of mass. m = 8 kg located at x = 2 m; m = 4 kg located at x = -4 m; m3= 1 kg located at x = 0 m
-
The Wide World of Fluids article titled "Where the Plume goes,". Air flows into the jet engine shown in Fig. P5.74 at a rate of 9 slugs/s and a speed of \(300 \mathrm{ft} / \mathrm{s}\). Upon...
-
The Fraser Paper Company produces large rolls of white paper weighing 1,000 kilograms for wholesalers for $1,500 each. The wholesalers then cut the paper into standard-sized sheets and package it in...
-
Define corporate social responsibility (CSR) in the context of sustainability through a more diverse and inclusive work force? Discuss one challenge in making CSR an ongoing reality in organizations....
-
For this exercise, we use JTRAIN.RAW to determine the effect of the job training grant on hours of job training per employee. The basic model for the three years is hrsempit = (0 + (1td88t + (2d89, +...
-
Describe in your own words how soils, microbes, and plants are working together to produce a functioning ecosystem, explain how the carbon cycle is a part of this story (Hint: Cakes and cookies):
-
How much more money would you need to contribute to meet the allowable maximum contribution?
-
Consult a recent news article about a companys executive pay. Summarize the main issues detailed within the article.
-
What is the New York Stock Exchange (NYSE)?
-
What is a firms enterprise value, and what does it measure?
-
What is the diluted earnings per share?
-
29 Assume the following information: 00:11:55 eBook Selling price Variable expense per unit Fixed expenses Unit sales The degree of operating leverage is closest to: Multiple Choice 1.52. 0.47....
-
Should we separate the debt and equity features of convertible debt? Team 1: Pro separation: Present arguments in favor of separating the debt and equity features of convertible debt. Team 2: Against...
-
The Bullock Cafeteria Corporation has computed the indifference point between a debt and common equity financing option to be $4 million of EBIT. EBIT is approximately normally distributed with an...
-
An investment of $100,000 is expected to generate cash inflows of $60,000 in one year and $79,350 in two years. Calculate the expected rate of return on this investment to the nearest whole percent.
-
Canon Corporation expects to receive $3 million of dividend income from the shares of stock it holds in Fuji Enterprises. Canon currently owns 15 percent of Fujis outstanding stock. Canons marginal...
-
Carry out an Internet search to find more examples of project success and failure. From your search, are there any common themes in each? What are the implications of success and failure in each case?
-
How successful are government contracting arrangements? How do these compare, for instance, with the arrangements BAA had with their suppliers in the construction of T5 at Heathrow (Project...
-
What is the role of brainstorming and how might it be used to greatest effect?
Study smarter with the SolutionInn App