In this team-based project, you have been brought in to assess whether Nucor should be the first adopter of a new technology. This requires a $340 million investment in a commercially unproven technology. If successful, Nucor can expand into the flat sheet segment that was previously a segment where only the large integrated steelmakers competed. This assignment requires that you combine qualitative information (e.g., industry and firm insights) with quantitative analysis in Excel (discounted cash flow analysis). I recommend that you assign team leads to each part. The final response requires that you weigh the various pieces of evidence together as a team and conclude with a final recommendation. The Excel cash flow parts contain three worksheets (Nucor thin slab analysis, projected integrated steelmaker modernize, and projected integrated steelmaker unmodernizedspreadsheets). You are being asked to apply five complimentary types of analysis to the Nucor case: background analysis (brief industry and internal), cash flow analysis (a template is provided), scenario analysis (i.e., changes within the model), competitive analysis, and real option analysis (i.e., considerations outside the model). Your deliverable should be a memo of up to three single-spaced pages (plus attachments, such as the Excel sheet you used for the analysis). This memo should have five sections based on the numbered instructions below. Be sure to use subheadings, underlining, boldface or similar formatting to communicate your analysis and recommendations clearly and efficiently. NOTE: To encourage a fair distribution of work output, it is important that you specify who the team leads are for the various parts.

Final recommendation

In light of all of the (cash-flow, scenario, competitive, and real options) analysis above, should Nucor adopt the CSP process? Why or why not? Do not just repeat the three conclusions from above. Consider issues that are not covered in the preceding analyses.