With the liberalization of the taxi industry in Singapore, you are considering buying a fleet of taxis for renting to interested cabbies. Each taxi will provide you with equal annual after-tax cash benefit of $26,280, i.e. cashflow at the end of each year. The useful life of each taxi is 10 years with an after-tax scrap value of $32,000, i.e. value at the end of 10 years. The money to purchase the car can earn 1% in a fixed deposit account at DDS Bank. The required rate of return for other taxi companies is about 6%. Using an appropriate discount rate (explain if you would use 1% or 6%), calculate the maximum price you would be willing to pay for a taxi. Ans: ($211,276.80)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more