Forward Integration or Horizontal Expansion

| March 14, 2016

The goal is to provide a brief analysis of the discussion assignment question and do your best to support it. Do not summarize the case, instead present your evaluation. Your analysis should be logical and supported by evidence and concepts. You do not need to thoroughly and completely analyze the case. But you do need to do think about the question and offer your opinion and an explanation supporting your opinion. Discussion memo should be approximately 500 words in length.

Discussion assignment Question:
Should Celulosa Arauco build the new chemical pulp plant (part of the Nueva Aldea project) or should it integrate into paper manufacturing? (your answer must include an NPV analysis of the Nueva Aldea plant)

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