Project A has a 60% probability that it will complete on time, leading to cost savings of $100,000. There is also a 40% probability that it may not finish on time due to a key members vacation schedule coinciding with its major release, leading to a loss of $30,000. Project B has a 90% probability of finishing on time, leading to a savings of $50,000. However, there is a 10% probability that a module may get slightly delayed leading to a loss of $10,000. Project C has an 80% probability of finishing on time, with a cost savings of $10,000. However, if the vendor does not complete installing hardware equipment that needs to be set up before testing the software components, it can cause delays and a loss of $1000. There is a 20% probability that this scenario can happen.

Calculate the expected monetary value of this risk for all three projects using the decision tree analysis. You must consider each project in the question as a branch in the decision tree for the risk being discussed. Essentially, the risk will have three branches (project A, B, and C) and for each branch, you will calculate the outcomes and probabilities as per the description provided.

Draw the decision tree for this scenario (a sample problem was discussed in the class Slide #58) and calculate the EMV considering the threats and opportunities.

You must show the working/ formula

You must pay careful attention to including the units for your answers. Ex: Meters, inches, currency, etc. If the units are missing, some points will be deducted accordingly.