Exercise: President Johnny of Mac Motors, considering whether or not to build a manufacturing plantin Dagupan City. Upon analyzing the different associated costs and factors to be considered in his plan, he was able to make a pavo ff table as summarized below. STATES OF ECONOMY CONTRACT ALTERNATIVES No new plant Build small plant Build large plant Values in million pesos. EXPAND 200 UNCHANGED 40 60 -30 -60 -120 300 400 80 Compute the EVPI using the two metho ds.

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Exercise: President Johnny of Mac Motors, considering whether or not to build a manufacturing plantin
Dagupan City. Upon analyzing the different associated costs and factors to be considered in his plan, he
was able to make a pavo ff table as summarized below.
STATES OF ECONOMY
CONTRACT
ALTERNATIVES
No new plant
Build small plant
Build large plant
Values in million pesos.
EXPAND
200
UNCHANGED
40
60
-30
-60
-120
300
400
80
Compute the EVPI using the two metho ds.
Transcribed Image Text:Exercise: President Johnny of Mac Motors, considering whether or not to build a manufacturing plantin Dagupan City. Upon analyzing the different associated costs and factors to be considered in his plan, he was able to make a pavo ff table as summarized below. STATES OF ECONOMY CONTRACT ALTERNATIVES No new plant Build small plant Build large plant Values in million pesos. EXPAND 200 UNCHANGED 40 60 -30 -60 -120 300 400 80 Compute the EVPI using the two metho ds.
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