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4. You are e reassessing the port expansion to now accept 15% more cargo per day. The expansion $12,000,000. The expansion will now operate
4. You are e reassessing the port expansion to now accept 15% more cargo per day. The expansion $12,000,000. The expansion will now operate for eight years before needing replacement. You will cost $65,000,000, resulting in annual cost savings of $3,000,000 alongside revenues of can still 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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