After finishing a 4-year course in Business Administration, Mr. A plans to establish a restaurant that will serve pure organic products. Mr. A knows that the product has to be of the highest quality and that he has to hire the best staff to launch his business. Mr. A's target clients are those who are health conscious. He intends to serve food with no preservatives or seasonings. He knows that the price of his products will be a little higher than those offered in other restaurants. Mr. A believes that he will get a good share in the market as long as the quality is high. The products that he will cater to the customers will be fresh and will contain natural ingredients, no seasonings, no preservatives, and of optimum nutrition. Mr. A has started to recruit good staff. He decided to hire staff with experience in finance, marketing, and production. Their first step was to make a menu that will be acceptable and affordable to both the middle and upper classes. They perform a pilot test of their product. The pilot test was well received and was given good comments. Subsequently, Mr. A and his group have to raise funds. They have three options: corporate bonds, preferred stock, and common stock. Mr. A decided that each investment should not be lower than P100,000. Furthermore, investors should have an annual income of at least P1,000,000. Corporate bonds would return 15% per year for the next five years. Mr. A, likewise, stated that at the end of five years, investors of corporate bonds would get at least P200,000. Those who will invest in preferred stock shall have their investment double at the end of five years if the market is good. If the market is unfavorable, the investors will lose half of their investment. The common stock is expected to triple their initial investment at the end of five years but the investors will lose everything if the market is unfavorable.

Ms. Z is considering on investing in Mr. A's company but she feels there is only 40% chance of being successful. What will you recommend?

I think you're going to use sensitivity analysis?