Path 1 Path 2 Path 3 Path 4 Path 5 Phase I/II choice choice choice choice choice choice Phase III choice choice choice choice choice choice Phase 1/Il choices Phase Ill choices Path 1 199 There are 3 options 1992 1993 1994 1995 Path 2 1996 Path 3 1997 1998 999 2000 2001 Path 4 2002 2003 2004 Path 5 2005 2006 2007 2008 2009 NPV 0 0 0 0 0 Disc RateNucleon 1) Describe the vertical chain for biotechnology productions. What "make" decisions has Nucleon already made? What "buy" decisions has it already made? Evaluate these decisions. 2) Draw a decision tree for stage 1/11/111 3) How would you go about evaluating which option to take using the decision tree? (you don't need to do this just discuss the approach) 4) What make or buy decisions confront Nucleon in this case? Are there any other options besides those mentioned in the case that Nucleon might explore? 5) What other factors must Nucleon consider before reaching a nal decision? When all factors are taken together, what should Nucleon do? During this piece of the evaluation, see if you can identify where the following concepts appear Specic assets Leakages Possible coordination costs 6) Which must come rst? Long term strategy consideration or production strategy for CRP-I? More Nucleon Materials I've posted a blank decision tree for you to use to help you frame the case. Can you come up with the 5 paths? I've also included a spreadsheet to help you calculate the cash flows for each path. See if you can fill this in. Now, rank them 1 through 5 on 1_) transaction costs 2) risk 3) profit Remember this case is about transaction costs! Which choice do you make? (go blank nucleon cash flows (.- blank nucleon decision tree