Problem
Nucor Case Study
Real Options Analysis
Consider the following strategic (real) options situations:
o Is there benefit to waiting 1 to 2 years?
o Is there benefit to starting the project but then later abandoning the project? In other words, how much of the $340 million investment is redeploy able for other uses if we decide to later stop the project?
o How should we think about possible growth options (i.e., consideration of plants beyond the first one)? Keep in mind that Ken would ultimately like to build 3 to 4 plants.
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.