'Internal Rate of Return and Slab Casting Essay\r'

'1. What brace been the sources of Nucor’s competitive vantage so further (namely, up until 1986)? Do you think â€Å"business as usual” is apparent to continue generating the same bread for Nucor? Why?\r\n2. What be the technological risks associated with thin-slab casting? (What could go wrong and how foul would it be? You may go steady the spreadsheet posted with these preparation questions helpful here.)\r\n3. What are the commercialise risks associated with thin-slab casting? (What could go wrong and how bad would it be? You may in addition find the spreadsheet useful here.)\r\n4. What are the financial risks associated with thin-slab casting? (What could go wrong and how bad would it be? Use the financial information in the pillowcase for guidance.)\r\n5. If thin-slab casting works, do you think it is likely to generate a sustainable competitive advantage for Nucor?\r\n6. Should Nucor commit to thin-slab casting?\r\nCase Analysis straits\r\nMake a recom m endation r egarding w hether Nucor should go forward with the t hin †slab casting toil. In developing your recommendation, you should a ddress s everal questions .\r\n1 . First, what pay been the foundations of Nucor’s com petitive advantage o ver the past decennium? Which of those (if any) are likely to help them succeed in the thin †slab casting venture?\r\n2 . Second, do you think that thin †slab casting go away be a source of s ustainable com petitive advantage? In answering this, you must consider two things.\r\na . One, do you think thin †slab casting will be a profitable investment?\r\nthither is a spreadsheet available for download along w ith this project that will help you m ake an assessm ent. This s preadsheet calculates the internal rate of return (IRR) of the new p roject using cash flow projections. The projections are establish on a ssum ptions detailed in the notes at a lower place the m ain spr eadsheet.\r\nOnce you download the s preadsheet, you bay window exp erim ent with d ifferent values that correspond to different assum ptions regarding Nucor’s strategic concerns. Som e of these m ay have a l arge effect on the value of the project; others may not. Some of the issues raised in the case whose effect you m ay want t o c onsider include scrap prices, tim e to r each f ull capacity, and r esponses by com petitors in the new m arkets Nucor would be e ntering.\r\nb . T wo, do you think that the profits obtained by thin †slab casting w ould be sustainable? Why or why not?\r\n3 . T hird, what are t he options that would be opened or close d if Nucor p roceeded with thin †slab casting?\r\nYour recom m endation should be base on both your calculations of cash flow projections and also on a m ore qualitative psychoanalysis about c om petitive advantage a nd p rofitabi lity, and t he extent to which they w ill be s ustainable (m eaning they cannot be easily im itated by other c om panies, etc. ) .\r\n'