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Use the CF analysis-thin slab Excel spreadsheet provided as a template to calculate the cash flows Nucor could expect if it adopted SMSs CSP process.

Use the CF analysis-thin slab Excel spreadsheet provided as a template to calculate the cash flows Nucor could expect if it adopted SMSs CSP process. Most of the critical data is already in the spreadsheet, drawn primarily from Exhibits 12A and 12B. Please adhere to the following assumptions and conventions: Dont change any of the figures I have input. Use 6.45% as the growth rate for the price of steel, not the historical 6.84% Assume the entire $280 million construction cost is incurred in 1986 Depreciate the factory equally over 10 years (1989-1998). The spreadsheet says 12 years, which includes the two years the factory is under construction (1987, 1988). I want you to start in 1989, when the plant comes on line, and assume it loses all value over the next 10 years. Note that in applying its investment criterion, Nucor ignored start-up expenses and working capital costs. Thus, in figuring the assets of the minimill in 1989 or later, those expenses need to be added to the asset base before calculating ROA

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