Exercise 6-3: Alphacap Option 1: Multichem
Cost/Unit 1.20$
Discount Rate 20% Expected Cost of Option 1
Option 2: Mixemat $208,281
Cost/Unit 0.90$
High Demand Max 90,000 Expected Cost of Option 2
$257,930
Spot Market
High Demand Price 4.00$
Low Demand Price 2.00$
Past Year Year 1 Year 2 Probability Option 1 (Multichem) Option 2 (Mixemat)
75%
Doublecap Sales, Suu 132,000 56% Cost $220,000 $307,083
75%
Doublecap Sales, Su110,000
25%
Doublecap Sales, Sud 99,000 19% Cost $192,500 $196,042
Doublecap Sales 100,000
75%
Doublecap Sales, Sdu 120,000 19% Cost $200,000 $214,583
25%
Doublecap Sales, Sd100,000
25%
Doublecap Sales, Sdd 90,000 6% Cost $175,000 $131,250
Total 100%