On Sunday, February 19, 2012 The Boston Globe reported that: " ... [The MBTA] provides 1.3 million rides each weekday ... The proposed increases - a one-way subway ride, now $1.70 with the reloadable CharlieCard and $2 with paper CharlieTicket, could rise to as much as $2.40 and $3, respectively - would be the largest by percentage since 1949, ...the advisory group said fares should rise no more than 25 percent, acknowledging the need for more money but wary of pricing people off the system. Such a far increase would generate about $80 million... (a) Compare the proposed increases in CharlieCard and CharlieTicket fares, in absolute and relative terms. CharlieCard Absolute change: CharlieCard relative change: Charlie ticket absolute change: Charlie ticket relative change: What would the price be if Charlie card and Charlie ticket fares instead increased by just 25% Charlie card prices: Charlie ticket price:

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 11PROB
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2. On Sunday, February 19, 2012 The Boston Globe reported that: " ... [The MBTA] provides 1.3 million rides each weekday ... The proposed increases - a one-way subway ride, now $1.70 with the reloadable CharlieCard and $2 with paper CharlieTicket, could rise to as much as $2.40 and $3, respectively - would be the largest by percentage since 1949, ...the advisory group said fares should rise no more than 25 percent, acknowledging the need for more money but wary of pricing people off the system. Such a far increase would generate about $80 million... (a) Compare the proposed increases in CharlieCard and CharlieTicket fares, in absolute and relative terms. CharlieCard Absolute change: CharlieCard relative change: Charlie ticket absolute change: Charlie ticket relative change: What would the price be if Charlie card and Charlie ticket fares instead increased by just 25% Charlie card prices: Charlie ticket price:
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