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ACELA IS IT A BIG MISTAKE
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[quote]<i>Originally posted by MP57313</i> <br /> <br />Huh? Depreciation expenses do not generate more funds for capital acquisitions. <br />[/quote <br /> <br />Well, depends on how well the managers run the business. I have worked for corporations that capture the depreciation charges from each business unit just as if they were a utility bill, like electricity. Those funds are placed in banks, money markets, etc. and become an internal capital fund. I have also worked for companies that do not repleni***he capital funds and must constantly turn to outside lenders for funding, of course at the current interest rates. The later system allows for higher cash flows through the business, which looks good to investors in the short term, but causes lower growth in the long run. <br /> <br />Honestly I cannot see how in any sense the Acela can be considered a mistake. For such a large change in technology for both Amtrak and Bombardier there has been few teething problems. If you think that I am off the mark look back at the Metroliners, or United Aircraft Turbotrains. When they were new they were horrible, but after a few years of experience and modifications they became reliable workhorses. (yes I know the Metroliners were still expensive to maintain) <br /> <br />The Acela has been accepted by the general public as a viable alternative to aircraft travel. The public is willing to pay a premium for this real (or perceived) benefit. Argue all you want about speed, the builder, Amtrak, teething problems and the like. But the bottom line is that if the general public accepts the technology then it is successful. And the Acela is successful.
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