One of the Reasons Given for the Decline of the Passenger

question 18

Multiple Choice

One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources.The railroad industry failed to:

• A) define its mission in terms of the benefits its customers seek
• B) ignore the marketing concept of serving customer needs and wants
• C) realize "customers only want what they know"
• D) have a sales orientation
• E) empower the consumer

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Definitions:

After-Tax Discount Rate

A discount rate that has been adjusted for the effect of taxes, utilized in evaluating the net present value (NPV) of an investment after taxes.

Straight-Line Depreciation

A method of calculating the depreciation of an asset where its cost is evenly spread across its useful life.

Initial Investments

The initial amount of money spent to start a project, purchase assets, or establish a business.

After-Tax Discount Rate

The rate of return after taxes have been calculated, used in evaluating the profitability of investment opportunities.