Arauco Case study - Research Paper ExampleThe overall contribution made by the new proposed pulp manufacturing facility will result into the expansion of the production capacity of the firm by more than 3 millions. This increase in capacity will therefore make the firm one of the leading manufacturers of pulp in the world in terms of overall production capacity. With an estimated investment of $1 Billion, the new project is estimated to produce sales of $350million per year. Since the overall estimated economic life of the plant would be 30 to 40 years therefore overall revenues will be equal to $14.00 Billions over the period of 40 years thus contributing significantly to the value of the firm. Though no specific discount rate is given however, given the sales generating capacity of the proposed project suggest that it will add significant value to the firm and firm’s shareholders will gain value from the proposed investment. Any organization willing to make its strategic move therefore has to look into its core competencies and must examine its core strengths.
custom essay discount code
