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3. You are the head of LA Port Authority debating an expansion to accept 10% more cargo per day. The expansion will cost $50,000,000
3. You are the head of LA Port Authority debating an expansion to accept 10% more cargo per day. The expansion will cost $50,000,000 and result in annual cost savings of $2,000,000 alongside revenues of $8,000,000. The expansion will operate for ten years before needing replacement. You can currently obtain subsidized funding from the FTA at 3.5%. a. Based on the NPV rule, should you pursue the project? b. Based on the IRR rule, should you pursue the project? C. If your CEO requires a payback of
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