Explain what caused npv to change

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Question: 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 you get a new CEO who declares that your company will not greenlight any project that does not have a hurdle rate of at least 12%. Using the original estimated cash flows, calculate NPV. Explain what caused NPV to change. Using Porter's model, what are the sources of risk that can affect your analysis?

Reference no: EM131763136

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