Question: Based on the following cash flow execute an analysis on which type of steel should be used. (6 marks) The question at hand is if

Based on the following cash flow execute an

Based on the following cash flow execute an analysis on which type of steel should be used. (6 marks) The question at hand is if an additional investment should be made in higher quality steel to use for the rail system. Although it would result in a higher initial investment, it would allow for more frequent rail traffic that would result in higher ticket revenue. It is important to note that the more frequent rail traffic would result in higher yearly maintenance costs. The project manager has asked that you use a five-year time period for your analysis. For each of the options calculate the Net Present Value. Based on your analysis provide your recommendation. * Cash flow data is in millions (\$ 000,000). *To gain full marks, you must show all of your work (including PV for each year) * Assume a 7% per year interest rate

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