. Estimate the weighted average cost of capital appropriate for discounting the Collinsville plant's incremental cash flows.

2. . Project the incremental cash flows associated with the acquisition of the Collinsville plant without the laminate technology and estimate the Acquisition's net present value. . Project the incremental cash flows Associated with the 1980 investment in laminate technology and estimate the investment's net present value.

3. Is the Collinsville proposal attractive on economic grounds?

4.. Assess the strategic issues associated with the proposal.. Is Collinsville attractive on strategic grounds?

, 5 Would you approve the acquisition of the Collinsville plant at the price and on the terms proposed? Why, or why not?