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Old 12-31-2012, 11:29 AM   #183
blaise blaise is offline
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Join Date: Aug 2007
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Quote:
Originally Posted by chiefzilla1501 View Post
I am saying in a profit loss scenario, you are basically talking about passenger receipts versus costs.

It doesn't factor in if it helps hotels fill capacity. If it encourages out of towners to spend money in your city. Or what is the dollar value in cost and productivity businesses can now enjoy because they can get their employees to travel cheaper and FAR more conveniently than by car or plane. Or what dollar figure do you have on reduced traffic? Or what about if you live in Cincinnati, and p&g can gets higher quality employees who improve business revenue? Or what is the dollar value on additional revenue your arena and conventions can now pull in because more people can travel there? Profit loss does not consider that. On the flip side, profit loss doesn't consider costs. Does it add pollution? Does it encourage your own local residents to spend in other markets? What is the opportunity cost of investing in rails versus a highway project. Etc....

ROI considers all streams of money. And attempts to place a dollar value and costs and benefits that have an impact on the decision. I agree that these ROI calculations can be manipulated. But we shouldn't kill projects just because they don't make direct profit.

And we shouldn't invest in multi billion dollar bullet trains because of ambiguous benefits that you assume we would receive, but don't really know that we would.
I don't see hordes of business travelers and college students filling bullet trains every day. I see minimal amount of interest.
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