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The 13-minute Case Study - Dupont video goes over the steps needed to help a company decide on go or no go before starting big
- The 13-minute "Case Study - Dupont" video goes over the steps needed to help a company decide on "go" or "no go" before starting big projects.
- Practice all the steps in the video before answering the following question.
- Make only one change in the Dupont case study example video - the company made a mistake in the chemical plant forecasts.
- The forecasts were too optimistic and overestimated annual sales.
- So, the company cut down the project's expected annual sales from $60 million in the video to $42 million.
Repeat all the steps in the video. How much is the Dupont chemical plant's net present value (NPV) in millions?
Enter your answer in the following format: + or - 1.23;
Hint #1: Answer is between -3.80 and -5.55.
Hint #2: Repeating all the steps will take 10 to 15 minutes. Since this is an important Business problem, it is worth this time.
Note: Positive NPV projects must be pursued and negative NPV projects must be abandoned
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