A Mexican railroad firm is considering an expansion of an intermodal transfer facility. It already owns the land for the facility. Design and engineering work for the facility has been completed and paid for. Which of the following should be included in project relevant cash flows?
A Mexican railroad firm is considering an expansion of an intermodal transfer facility. It already owns the land for the facility. Design and engineering work for the facility has been completed and paid for. Which of the following should be included in project relevant cash flows?
Chapter2: Loads On Structures
Section: Chapter Questions
Problem 1P
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5. A Mexican railroad firm is considering an expansion of an intermodal transfer facility. It already owns the land for the facility. Design and engineering work for the facility has been completed and paid for. Which of the following should be included in project relevant cash flows?
A. |
The cost of a branch rail line to the site. The line was built last year and is used for other traffic. It can also serve the new facility. |
|
B. |
The cost of design and engineering work |
|
C. |
Future depreciation of the facility |
|
D. |
Tax savings from the future capital allowance of the facility |
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