Solve the problem using the concept of expected monetary value (EMV). The approved budget (cost) for a project is $250,000. The team has identified the following five risks for the project:

1) Risk type: Threat

Risk probability: 50%

Impact(cost): $50,000

2) Risk type: Threat

Risk probability 25%

Impact(cost) $75000

3)Risk type: Opportunity

Probability 75%

Impact (benefit) $40,000

4)Risk type: Threat

Risk Probability 50%

Impact(cost) $100,000

5) Risk type: Threat

Risk Probability 25%

Impact(cost) $150,000

Provide the answer to the following questions, with calculations and reasoning:

1. Which are the top three risks for the project? Why?

2. What is the expected total cost for the project?

3. What is the best-case total cost for this project?

4. What is the worst-case total cost for this project?

5. Based on the combined EMV of all the risks, how much contingency reserve would you suggest for the project?