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Hey can someone tell me how to do a financial analysis on the above information? The objective is to decide whether or not a train
Hey can someone tell me how to do a financial analysis on the above information?
The objective is to decide whether or not a train station should use automated trains or trains with drivers (which one will cost less)
Blue Mountain Mining Information Sheet Iron ore reserve (tonnes) Annual Life of mine Distance from mine to Trains in operation Locomotives per traln Carriages per train Fuel Fuel cost iS per litre Effective ocerati Tax rate Discount rate 900,000,000.00 30,000,000.00 production 0.00 240.00 Round trip is 480 kilometres 3.00 Each train comprises locomotives and carriages 2.00 208.00 usage per train (litres per k 8.00 Averaged over round t 1.40 360.00 Used to adjust for maintenance and breakdowns 30.00% Tax is paid in the year of income 10.00% lies to non-automated and automated Information on Locomotives locomotive Initial outlay IS) 2,500,000.00 Mine uses MD4400AC trains Life of locemotive Working capital S Maintenance costs per Depreciation method Salvage value at end of 5.00 Operative life is shorter than average due to continued operation of trains and load requirements 500,000.00 Fuel 200.000.00 and related materials Straight Line Rate 1/Locomotive Life r 15 0.00 Mine location and associated costs make locomotives no s able Information on Drivers required (per train, per Work hours (per driver, per Driver's weekly working hours (a Driver yearly working weeks Driver's unavalability due to iiness Total Driving Hours (per Total drivers requir Drivers average annual 4.00 Two drivers operate each train. 12.00 Each shift covers the trip from the mine to the port or from the p 42.00 Averaged as drivers will work 2 weeks on 2 weeks off 48.00 Net of leave 2.00 27.00 210,000.00 Additional capital outlay to rail line (5 Salvage of additional capital outlay to rail line (S Additional capital outlay to locomotive (S per l Salvage of additional capital o Additional working capital (S) Fuel efficiency usage adjustment Maintenance cost adjustment 50,000,000.00 Sensors and related materials, depreciated straight line over life of mine 0.00 250.000.00 related 0.00 1,000,000.00 Total across rail line and all trains 93.00% Automation reduces fuel usage as locomotives operate more efficiently e.g. reduces cost by 7 95.00% Automation reduces maintenance costs through less wear and tear and breakdowns of locomotives, e. reduces cost by 5% 0.00 No drivers required due to automation 5.00 Additional technicians Total automation technicians required Automation technician's average annual to maintain locomotives and rail Line 130,000.00 Blue Mountain Mining Information Sheet Iron ore reserve (tonnes) Annual Life of mine Distance from mine to Trains in operation Locomotives per traln Carriages per train Fuel Fuel cost iS per litre Effective ocerati Tax rate Discount rate 900,000,000.00 30,000,000.00 production 0.00 240.00 Round trip is 480 kilometres 3.00 Each train comprises locomotives and carriages 2.00 208.00 usage per train (litres per k 8.00 Averaged over round t 1.40 360.00 Used to adjust for maintenance and breakdowns 30.00% Tax is paid in the year of income 10.00% lies to non-automated and automated Information on Locomotives locomotive Initial outlay IS) 2,500,000.00 Mine uses MD4400AC trains Life of locemotive Working capital S Maintenance costs per Depreciation method Salvage value at end of 5.00 Operative life is shorter than average due to continued operation of trains and load requirements 500,000.00 Fuel 200.000.00 and related materials Straight Line Rate 1/Locomotive Life r 15 0.00 Mine location and associated costs make locomotives no s able Information on Drivers required (per train, per Work hours (per driver, per Driver's weekly working hours (a Driver yearly working weeks Driver's unavalability due to iiness Total Driving Hours (per Total drivers requir Drivers average annual 4.00 Two drivers operate each train. 12.00 Each shift covers the trip from the mine to the port or from the p 42.00 Averaged as drivers will work 2 weeks on 2 weeks off 48.00 Net of leave 2.00 27.00 210,000.00 Additional capital outlay to rail line (5 Salvage of additional capital outlay to rail line (S Additional capital outlay to locomotive (S per l Salvage of additional capital o Additional working capital (S) Fuel efficiency usage adjustment Maintenance cost adjustment 50,000,000.00 Sensors and related materials, depreciated straight line over life of mine 0.00 250.000.00 related 0.00 1,000,000.00 Total across rail line and all trains 93.00% Automation reduces fuel usage as locomotives operate more efficiently e.g. reduces cost by 7 95.00% Automation reduces maintenance costs through less wear and tear and breakdowns of locomotives, e. reduces cost by 5% 0.00 No drivers required due to automation 5.00 Additional technicians Total automation technicians required Automation technician's average annual to maintain locomotives and rail Line 130,000.00Step by Step Solution
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