Simple linear trend analysis

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Currently, the MTrust Group has five large assets in the trust, most notably the Sydney Airport and the Cross City Tunnel. Your investment bank has been hired to determine valuations of each property separately since M needs to sell assets to generate cash. What factors will influence how you determine the discount rate?

Each asset generates a return based on activity. For example, fees by car users generate the return on the cross-city tunnel. If you were given all the activity data for the past 2 years describe the problems associated with using only a simple linear trend analysis.

Reference no: EM132373590

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