DOU one Srvice and customer relations. is The recent power crisis in America becomes a caureen to finameral sriker forms. The management of Masilan Bank, one of the fracal institutions in the economy was conarned about potential loss that night in the event of a physical abastrophe such as a power failea afire. The bank estimated that the Las from of these incitente Could be as much as $ 100 million, including losses due to interupted One project the bank Considering is the installation of an emergency fower generater at it's operations headquarters. The cast of the emergung generator is $800,ood, and if it is installed, no lasces from this type of incident will be an incurred. However, if the gawrator is not installed love is a 10f chance that a next you If there is outage, love is aos probability that to resulting fosses will be very touge, or approximately $80 million in lost earning Alternately, it is estimated that there is probability of only slightly losses of around $1 million install the new generator using the deatsion free analysis, aduire the bank whettes to not. , former outage will oceno odkring the am 90.95 15 marks QUESTION TWO (15 MARKN) The recent power crisis in Chana becomes a concern to financial services firms. The management of Mobilar Bank, one of the financial institutions in the economy was concerned about the potential loss that might occur in the event of a physical catastrophe such a power failure or a fire. The bank estimated that the loss from one these incidents could be a much as GHD100 million, including losses due to interrupted service and customer relations One project the bank is considering is the installation of an emergency power generator ait operations headquarters. The cost of the emergency generator is 800,000, and if it installed, no losses from this type of incident will incurred. However, if the generator is to installed, there is a 10% chance that a power outage will occur during the next year. If there an outage, there is a 0.05 probability that the resulting losses will be very large, approximately $20 million in lost earnings. Alternatively, it is estimated that there is a 0.9 probability of only slightly losses of around el million. Using a decision tree analysis, advice the bank whether to install the new generator or not. DOU one Srvice and customer relations. is The recent power crisis in America becomes a caureen to finameral sriker forms. The management of Masilan Bank, one of the fracal institutions in the economy was conarned about potential loss that night in the event of a physical abastrophe such as a power failea afire. The bank estimated that the Las from of these incitente Could be as much as $ 100 million, including losses due to interupted One project the bank Considering is the installation of an emergency fower generater at it's operations headquarters. The cast of the emergung generator is $800,ood, and if it is installed, no lasces from this type of incident will be an incurred. However, if the gawrator is not installed love is a 10f chance that a next you If there is outage, love is aos probability that to resulting fosses will be very touge, or approximately $80 million in lost earning Alternately, it is estimated that there is probability of only slightly losses of around $1 million install the new generator using the deatsion free analysis, aduire the bank whettes to not. , former outage will oceno odkring the am 90.95 15 marks QUESTION TWO (15 MARKN) The recent power crisis in Chana becomes a concern to financial services firms. The management of Mobilar Bank, one of the financial institutions in the economy was concerned about the potential loss that might occur in the event of a physical catastrophe such a power failure or a fire. The bank estimated that the loss from one these incidents could be a much as GHD100 million, including losses due to interrupted service and customer relations One project the bank is considering is the installation of an emergency power generator ait operations headquarters. The cost of the emergency generator is 800,000, and if it installed, no losses from this type of incident will incurred. However, if the generator is to installed, there is a 10% chance that a power outage will occur during the next year. If there an outage, there is a 0.05 probability that the resulting losses will be very large, approximately $20 million in lost earnings. Alternatively, it is estimated that there is a 0.9 probability of only slightly losses of around el million. Using a decision tree analysis, advice the bank whether to install the new generator or not