Option 1 MULTICHEM Discount Factor(20%) 1.

Year 0
NPV 150938.0625

Year 1
Probability 0.75 Probability 0.25
Sales 110000 Sales 100000
Raw Material Price 1.2 Raw Material Price 1.2
Total Cost 132000 Total Cost 120000
NPV of Total Cost 123750.75 NPV of Total Cost 232500

Year 2
Probability 0.75 Probability 0.25 Probability 0.75 Probability 0.25
Sales 132000 Sales 99000 Sales 120000 Sales 90000
Raw Material Price 1.2 Raw Material Price 1.2 Raw Material Price 1.2 Raw Material Price 1.2
Total Cost 158400 Total Cost 118800 Total Cost 144000 Total Cost 108000
NPV 158400 NPV 118800 NPV 144000 NPV 108000

Option 2 MIXEMAT Discount Factor(20%) 1.2

Year 0
NPV 288082.03125

Year 1
Probability 0.5625 Probability 0.1875 Probability 0.1875 Probability 0.0625
Sales 110000 Sales 100000 Sales 110000 Sales 100000
Raw Material Demand High Raw Material Demand High Raw Material Demand Low Raw Material Demand Low
Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 110000 Amount Bought from M 100000
Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 99000 Money paid to Mixemat 90000
Money paid to spot mar 80000 Money paid to spot mar 40000 Total Cost 99000 Total Cost 90000
Total Cost 161000 Total Cost 121000 NPV 257203.125 NPV 217968.75
NPV 319203.125 NPV 248968.75

Year 2
Probability 0.5625 Probability 0.1875 Probability 0.1875 Probability 0.0625 Probability 0.5625 Probability 0.1875 Probability 0.1875 Probability 0.0625 Probability 0.5625 Probability 0.1875 Probability 0.1875 Probability 0.0625 Probability 0.5625 Probability 0.1875 Probability 0.1875 Probability 0.0625
Sales 132000 Sales 99000 Sales 132000 Sales 99000 Sales 120000 Sales 90000 Sales 120000 Sales 90000 Sales 132000 Sales 99000 Sales 132000 Sales 99000 Sales 120000 Sales 90000 Sales 120000 Sales 90000
Raw Material Demand High Raw Material Demand High Raw Material Demand Low Raw Material Demand Low Raw Material Demand High Raw Material Demand High Raw Material Demand Low Raw Material Demand Low Raw Material Demand High Raw Material Demand High Raw Material Demand Low Raw Material Demand Low Raw Material Demand High Raw Material Demand High Raw Material Demand Low Raw Material Demand Low
Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 132000 Amount Bought from M 99000 Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 120000 Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 132000 Amount Bought from M 99000 Amount Bought from M 90000 Amount Bought from M 90000 Amount Bought from M 120000 Amount Bought from M 90000
Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 118800 Money paid to Mixemat 89100 Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 108000 Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 118800 Money paid to Mixemat 89100 Money paid to Mixemat 81000 Money paid to Mixemat 81000 Money paid to Mixemat 108000 Money paid to Mixemat 81000
Money paid to spot mar 168000 Money paid to spot mar 36000 Total Cost 118800 Total Cost 89100 Money paid to spot mar 120000 Money paid to spot mar 0 Total Cost 108000 Total Cost 81000 Money paid to spot mar 168000 Money paid to spot mar 36000 Total Cost 118800 Total Cost 89100 Money paid to spot mar 120000 Money paid to spot mar 0 Total Cost 108000 Total Cost 81000
Total Cost 249000 Total Cost 117000 NPV 118800 NPV 89100 Total Cost 201000 Total Cost 81000 NPV 108000 NPV 81000 Total Cost 249000 Total Cost 117000 NPV 118800 NPV 89100 Total Cost 201000 Total Cost 81000 NPV 108000 NPV 81000
NPV 249000 NPV 117000 NPV 201000 NPV 81000 NPV 249000 NPV 117000 NPV 201000 NPV 81000