In this assignment, 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). After you read the case, answer both questions: background analysis and cash flow analysis. For cash flow analysis, you need to do calculations using Excel file attached. Once you finished your calculations using Excel file, you can answer your second part of the assignment. 1.Background Analysis Industry: Of the three groups of steelmakers, what are some of the differences between integrated steelmakers and minimill steelmakers? Nucor: What are some of the core competencies of Nucor? One way to think about this is to consider what its most distinguishing value chain (i.e., primary and support) activities are that have been difficult for others to imitate. 2.Cash Flow Analysis Use the “CF analysis-thin slab” Excel spreadsheet provided as a template to calculate the cash flows Nucor could expect if it adopted SMS’s CSP process. Most of the critical data is already in the spreadsheet, drawn primarily from Exhibits 12A and 12B. Don’t 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).