|Purchase price||$ 4,500,000,000.00||$ 4,500,000,000.00|
|Annual benefit||$ 200,000,000.00||$ 1,200,000,000.00|
|Construction||$ -||$ 8,000,000,000.00|
If we consider the pipeline to be a long term investment (25 years), and we can get the interest rate the government is assuming (5%):
If we consider the expanded pipeline, at 0.8%, then the PV is $27.092B, while the cost is only $12.5B.
If the oil demand lowers, it becomes a risk to the project (need consideration). We might want to sell existing pipeline (ignore inflation and deprecation).
Q: will midterm 1 be scaled down?
no, but midterm 2 will be quite different.
Q. How different should first draft or final report be?
Ideally, the same.
First draft feedback isn’t going to be fully detailed and would only outline logic or information flaws.
Q. Seen a perfect report?
B is easy. High A is tough.
Q. How not to give up easily on one topic before choosing another one?
Gathering information for a topic is hard. Find suitable survey data etc.
For “how do I do this”, contact Dr. Hollett.
Q. Confidential information in report?
If information is from UBC, professor reading it is fine.
If information is from companies, then anonymize the information such that it can be viewed publicly, or provide NDA to professor.
Q. What should the presentation outline look like?
Make is specific to your topic, don’t be too generic (i.e. cost and revenue model with a detailed description outlining input, outputs, and analysis).