Should the Dixon Corporation buy the Collingsville plant?

Yes they should but only if they go ahead with the laminate technology investment. The value of the plant on its own is a negative NPV project based on a WACC of between 16-17%, which is where it should be. This is possibly why the price asked for the sale of Collinsville by ACC is 12 million. It could be argued that they have inclued some of the benefits of there R&D of the laminate into the asking price hence a negative NPV for the plant alone.