hey there! i'm unsure about a few things for this question attached. from the information given, we have to create a discounted cash flow to figure out the NPV for both projects (to determine whether using the road (truck) is a better means of transport or via rail (train)). however the information given includes figures for both the road/rail and truck/train so i'm not sure which to stick with. i've included fuel costs, road & truck maintenance and additional maintenance, haulage and salaries under the expenses line. as for depreciation, i have gotten my figure based on the outlay of trucks and its life instead of the road info. would you be able to help check if i'm going in the completely wrong direction with this?

Haulage Information Spreadsheet Mine Information Life (years) Production (tons p.a.) Road Haulage Road Information Distance (kms) Cost of Construction (per km) Annual Maintenance (per km) Life (years) Depreciation Salvage Value Truck Information Number of Trucks Required Truck Type Outlay; Prime Mover (per truck) Outlay; Powered Dolly + 4 Haulage Trailers (per truck) Annual Fuel Costs (per truck) Annual Maintenance (per truck) Additional Maintenance Year 4 (per truck) Life (years) Depreciation Method Salvage Value (at end of life) Average Speed from and to mine (kmph) Travel Time; Mine to Rail and back (hours) Round Trips per day Total Distance Travelled (per day) Fuel Usage (litres per km) Fuel Cost (per litre) Truck Haulage Capacity (tons) Total Annual Haulage all Trucks Driver Information Drivers Required (per truck, per day) Work Hours (per driver, per day) Driver Breaks (per driver, per day) Working Days Driver's Weekly Working Hours Driver' Yearly Working Weeks (net of leave) Total Drivers Required Driver's Average Annual Salary Total Driving Hours (per year, all trucks) Additional Information Working Capital Tax Rate Required Rate of Return Further Notes Under either option, the coal is unloaded when it reaches the connecting rail line. It is assumed that the delays in unloadin Data 32 7,200,000 80 1,000,000 200,000 32 Straight Line - 9 Prime Mover + Powered Dolly + 4 Haulage Trailers 1,500,000 1,500,000 725,760 100,000 500,000 8 Straight Line 55 2.91 6.00 960.00 1.50 1.40 400 7,776,000 2 12 2 360 40 48 41 150,000 77,760 2,000,000 30.00% 10.00% eaches the connecting rail line. It is assumed that the delays in unloading are captured in the average speed figures. Notes Rail Haulage Track Information Distance (kms) It is assumed that all construction costs occur at the start of the project Includes loading and unloading times Cost of Construction (per km) Annual Maintenance (per km) Life (years) Depreciation Salvage Value Train Information Number of Trains Required Train Type Outlay; Locomotive (per locomotive) Outlay; Carriages (per carriage) Annual Fuel Costs (per train) Annual Maintenance (per train) Year 8 Additional Maintenance (per train) Life (years) Depreciation Method Salvage Value (at end of life) Average Speed from and to mine (kmph) Travel Time; Mine to Rail and back (hours) Round Trips per day Total Distance Travelled (per day) Fuel Usage (litres per km) Fuel Cost (per litre) Train Haulage Capacity (tons) Total Annual Haulage all Trains Drivers Required (per train, per day) Work Hours (pre driver, per day) To esnure safety, drivers must accumulate 2 hours of break within every 12 hour work day. Driver Breaks (per driver, per day) Working Days Driver's Weekly Working Hours Driver' Yearly Working Weeks (net of leave) Total Drivers Required Driver's Average Annual Salary Total Driving Hours (per year, all trains) Additional Information It is assumed that the Working Capital is returned when the investment ends. s in unloading are captured in the average speed figures. Working Capital Tax Rate Required Rate of Return 80 3,000,000 50,000 32 It is assumed that all construction costs occur at the start of the project Straight Line - 1 2 x Locomotive + 50 x Coal Carriages 3,000,000 200,000 1,612,800 1,000,000 4,000,000 16 Straight Line 30.00 5.33 4.00 640.00 5.00 1.40 5,000 7,200,000 4 12 360 40 48 9 200,000 17,280 Includes loading and unloading times Two drivers to operate each train Driver's get breaks but this does not affect trains running given use of two drivers 1,000,000 30.00% 10.00% It is assumed that the Working Capital is returned when the investment ends