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Erie Shipping, which currently transports goods in ships across oceans, is considering project A , which would involve transporting goods in trains over railroad tracks.
Erie Shipping, which currently transports goods in ships across oceans, is considering project A which would involve transporting goods in trains over railroad tracks. For most of its existence, Erie Shipping transported goods in ships, trains, and trucks. Project A would require an initial investment of $ and is expected to produce annual cash flows of $ each year forever with the first annual cash flow expected in year. What is the NPV of project A based on the information in this paragraph and the following table and applying the pure play approach to determining a project's cost of capital? tableFirmLine of BusinessErie Shipping,Transports goods in ships acrossThomas Shipping,Transports goods in trains over ICB Truckers,Transports goods in trucks on roadsDiversified Shipping Transports goods in ships, trains, and$ plus or minus $$plus or minus $$plus or minus $$plus or minus $None of the abo,ve is within $
Erie Shipping, which currently transports goods in ships across oceans, is considering project A which would involve transporting goods in trains over railroad tracks. For most of its existence, Erie Shipping transported goods in ships, trains, and trucks. Project A would require an initial investment of $ and is expected to produce annual cash flows of $ each year forever with the first annual cash flow expected in year. What is the NPV of project A based on the information in this paragraph and the following table and applying the pure play approach to determining a project's cost of capital?
tableFirmLine of BusinessErie Shipping,Transports goods in ships acrossThomas Shipping,Transports goods in trains over ICB Truckers,Transports goods in trucks on roadsDiversified Shipping Transports goods in ships, trains, and$ plus or minus $$plus or minus $$plus or minus $$plus or minus $None of the abo,ve is within $
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