Exercise 6-2: Unipart
Discount Rate 20% Option 1: Parts4u.com Option 1 Expected Cost
Commission 5% $10,917,969
Option 2: AllMRO Option 2 Expected Cost
2 Year Fee $10,000,000 $10,516,927
Commission 1%
Cost of B2B Marketplace at T=0
Past Year Year 1 Year 2 Probability Option 1 (Parts4u) Option 2 (AllMRO)
50%
MRO Spend, Muu 150,000,000$ 38% Cost $11,458,333 $10,625,000
75%
MRO Spend, Mu150,000,000$
50%
MRO Spend, Mud 135,000,000$ 38% Cost $10,937,500 $10,520,833
MRO Spending 150,000,000$
50%
MRO Spend, Mdu 135,000,000$ 13% Cost $10,312,500 $10,395,833
25%
MRO Spend, Md135,000,000$
50%
MRO Spend, Mdd 121,500,000$ 13% Cost $9,843,750 $10,302,083
Total 100%