Goodyear is nearing its first major commitment of capital for major investment projects in its history, All American Pipeline. The pipeline will transport heavy crude oil from California to Texas. It is the central core of the program, Goodyear, to diversify its business core tires. Goodyear estimates the cost of construction is just under $ 1 billion, while outside observers believe that the cost could be twice as high. Students were asked to evaluate the project based on an analysis of data on supply and demand for heavy crude oil transportation and the economy, as well as the calculation of discounted cash flow and the pipeline can be expected to create. "Hide
by Timothy A. Luehrman, William A. Teichner Source: Harvard Business School 15 pages. Publication Date: September 13, 1991. Prod. #: 292040-PDF-ENG
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