2. Calculate the Expected Monetary Value (EMV) Method Outcomes (Demand) EMV Alternatives High Moderate Low ? Large plant 500,000 250,000 -300,000 ? Small plant 225,000 125,000 -50,000 No plant 0 0 0 ? Probability 0.3 0.5 0.2 of outcome Chose the large plant 3. Calculate the Expected Opportunity Loss Outcomes (Demand) EOL Alternatives High Moderate Low ? Large plant 0 0 360,000 ? Small plant 330,000 150,000 60,000 No plant 600,000 300,000 2 Probability 0.3 0.5 0.2 of outcome Chose the large plant