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Economics

Suppose you are an analyst in a firm looking to build a new steel plant in Pittsburgh. All the figures you receive are in $million.

t=0 t=1 t=2t=3t=4t=5t=6t=7t=8

($1,500) 580 580580580580580580580

If your WACC is 9%, calculate the NPV.

Now suppose you hear another new steel mill is going to be built in Phoenixville, about 280 east, closer to market and ports. What would Michael Porter say call this news and how would you incorporate it into your analysis.

What would happen to NPV?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M92311664

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