Last, perform some sensitivity analysis using Goal Seek. For this question assume the you only have Favorable and Unfavorable markets and there is no Average market possibility. Construct a sensitivity table and plot the payoffs versus P(Favorable). Then determine the trade-off points Current vs New Houston Plant, Current vs New NM plant, and Houston vs New Mexico plants. Comment on trade-off points.

Current vs new Houston .35

Current vs new Mexico .23

Houston vs Mexico .51

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0 1 2 P(Favorable) 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 0 $ 0.1 $ 0.2 $ 0.3 $ 0.4 $ 0.5 $ 0.6 $ 0.7 $ 0.8 $ 0.9 $ 1 $ 0.35234089 $ 0.225513326 $ 0.512316546 $ Sensitivity Table 560,301 $ 1,599,870 $ 2,639,438 $ 3,679,007 $ 4,718,575 $ 5,758,144 $ 6,797,712 $ 7,837,281 $ 8,876,849 $ 9,916,418 $ 10,955,986 $ 30,981,793 $ 4,223,126 $ 4,223,126 $ New Plant in Houston (10,334,181) $ (6,202,584) $ (2,070,986) $ 2,060,611 $ 6,192,208 $ 10,323,806 $ 14,455,403 $ 18,587,001 $ 22,718,598 $ 26,850,195 $ Current Plant 2,904,666.50 $ (1,016,878.39) $ 5,886,182.43 $10,832,675.89 $ Current vs Outsource to Current vs. New New Mexico China Houston Plant 9,265,912 $ 10,894,482 $ 3,889,427 $ 9,721,604 $ 7,802,453 $ 2,164,728 $ 10,177,296 $ 4,710,424 $ 440,028 $ 10,632,988 $ 1,618,395 $ (1,284,671) $ 11,088,680 $ (1,473,633) $ (3,009,371) $ 11,544,372 $ (4,565,662) $ (4,734,070) $ 12,000,064 $ (7,657,691) $ (6,458,769) $ 12,455,756 $ (10,749,720) $ (8,183,469) $ 12,911,448 $ (13,841,749) $ (9,908,168) $ 13,367,140 $ (16,933,778) $ (11,632,868) $ 13,822,832 $ (20,025,807) $ (13,357,567) $ 10,871,501 $ New Plant in Mexico (3,329,126) $ (564,858) $ 2,199,410 $ 4,963,678 $ 7,727,946 $ 10,492,214 $ 13,256,481 $ 16,020,749 $ 18,785,017 $ 21,549,285 $ 24,313,553 $ 6,410,520 $ 2,904,666 $ 10,293,558 10,832,676 $ 11,600,498 $ Houston vs New Mexico Plant $ (7,005,055) (5,637,726) (4,270,396) (2,903,067) (1,535,737) (168,408) 1,198,922 2,566,251 3,933,581 5,300,910 6,668,239 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- $(5,000,000) $(10,000,000) $(15,000,000) 0.1 Chart Title 2 0.2 0.3 0.4 Current Plant - New Plant in Mexico 0.5 0.6 0.7 -New Plant in Houston --Outsource to China 0.8 0.9 1