TY  - JOUR
AB  - In the late 1990s, the National Railroad Passenger Corporation (Amtrak) faced a rude awakening as Congress stipulated that it eliminate its reliance on federal subsidies by 2002. In response, Amtrak drew up a plan for self-sufficiency, the centerpiece of which was a new high-speed passenger service that, it was hoped, would boost revenue enough to make Amtrak self-sufficient by 2002. To run this new service, Amtrak needed to purchase $750 million worth of new locomotives and train sets in 1999. Three alternatives were available for funding the purchase: debt financing, lease financing, or reliance on federal sources. The case opens with Amtrak's CFO instructing her staff in April 1999 to review a leveraged-lease proposal that has just been submitted by BNY Capital Funding LLC. The objectives of the case are to introduce students to financial leases as a financing alternative, explore the lease-versus-buy decision and the conditions under which financial lease arrangements make sense, and exercise skills in the valuation of financial leases.
VL  - 
IS  - 
SN  - 2474-7890
DO  - 10.1108/case.darden.2016.000211
UR  - https://doi.org/10.1108/case.darden.2016.000211
AU  - Bruner Robert F.
AU  - Chan Jessica
PY  - 2017
Y1  - 2017/01/01
TI  - National Railroad Passenger Corporation (“Amtrak”): Acela Financing
T2  - Darden Business Publishing Cases
PB  - University of Virginia Darden School Foundation
SP  - 1
EP  - 11
Y2  - 2024/04/20
ER  -