If Intrinergy brings perspective to the game. Intrinergy have two options for biomass to produce steam for industrial enterprises. They can use wood chips or sawdust. Chips are available in the woods, essentially free, although capital investments in vehicles that are required to bring the chips at the factory, and has variable costs of chip wood waste and transporting it to the steam plant. Sawdust is supplied to the plant at a price that should be a random walk. Once again Monte Carlo to compare alternatives. As Intrinergy fuel steam plant is not important for BurMills and will not change BurMills decision. On the other hand, it will be important for Intrinergy, which option BurMills takes, as it affects the level of risk and return Intrinergy from the project. (Student tables are available for use with the case. "Hide
by Samuel E injuries, Brandon Ogilvie Source: Darden School of Business 3 pages. Publication Date: January 14, 2010. Prod. #: UV4313-PDF-ENG
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