G H Assumptions: Annual growth rate of price of steel 6.45% 6.84% Natorical) Annual growth rate of operating costs 6.75% Tax rate 35.00% Discount rate 15.50% Thin Slab Minimill Capacity(million of tons of steel) Shipments (Exhibit 12A) Hot-rolled sheets (HR) (Exhibit 12A) Cold-rolled sheets (CR) (Exhibit 12A) Revenue/ton Hot-rolled sheets (HR) (Exhibit 128) Cold-rolled sheets (CR) (Exhibit 128) Total revenue (shipment xrevion) Hot-rolled sheets (HR) Cold-rolled sheets (CR) Operating costs/ton Hot-rolled sheets (HR) (Exhibit 128) Cold-rolled sheets (CR) (Exhibit 128) Total operating costs (shipment x cosion) Hot-rolled sheets pin) Cold-rolled sheets (CR) Depreciate over 10 years Income Hot-rolled sheets (HR) Cold-rolled sheets (CR) Total income Add back depreciation Subtract capital expenditures Subtract startup costs Subtract working capital costs Cash flows internal rate of return (RR) M N 2 4 . 10 11 12 1986 1997 1966 1989 1990 1991 1992 1993 1994 1905 1996 1997 1999 025 05 05 05 05 05 05 05 05 05 0.175 035 0.35 035 035 0.35 0.35 0.35 0.35 0.35 3065 3005 225 283 30.00 30.00 14 Operating assumptions CF analysis-thin slab CF analysis-Modernize CF analysis - Unmodernized 1 Normal View Ready Sum-0