Rapid Zoomer, a well-known hi-speed train company is offered to invest in new LRT line from Tanjung
Fantastic news! We've Found the answer you've been seeking!
Question:
Rapid Zoomer, a well-known hi-speed train company is offered to invest in new LRT line from Tanjung Karang to Sekinchan. The investment required RM200 million as a capital and the company are expected to earn a return of RM10 million per year for 30 years. The operating and maintenance cost are RM2 million per year. At the end of the contract, the company is required to provide charter system for commuting passengers to suburb area which will require a cost of RM15 million. If the interest rate is 7.0%, evaluate whether the company should accept or reject the offer and draw the cash flow diagram.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date: