What changes would you do to the cash flow analysis in Exhibit 2 to estimate the NPV of the project?
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What changes would you do to the cash flow analysis in Exhibit 2 to estimate the NPV of the project? Specifically discuss the following:
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How would you deal with the issue of tank car capacity?
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How would you deal with potential cannibalization?
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How would you deal with the issue of inflation?
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Discuss any other changes you would like to make to the cashflow analysis?
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How would you respond to the individual concerns raised about the project? Please respond to each of the concerns of the transportation division, the director of sales, the assistant plant manager and the treasury staff.
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Is the project attractive and under what criteria?
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Would you fund the project?
DETAILED ASSIGNMENT
