ISK MANAGEMENT CASE STUDY$$You are the Project Manager of new Product development in your company. Project is going to take $5$ years to complete. Entire project has been contracted out $($outsourced$).$ You have a Cost Reimbursable contract with the seller. Target cost has been determined at $$5,000,000.$ And, you have agreed with the seller $30\%$ of target cost as a target fee. In your Contract, seller did not accpet the fire risk. Therefore, you purchased the insurance to protect yourself from fire losses for $$10,000$ per year.During project planning meeting with team members you find out that, there is a $40\%$ probability of a delay in the receipt of parts, with a cost to the project of $$900,000.$ In the meeting, team members also state that there is also $30\%$ likelihood that the parts will cost $$400,000$ less than expected. While interview your engineers for the product design, they state that, there is a $20\%$ probability that two parts will not fit together when installed, costing an extra $$150,000.$ During discussion with them, engineers also find out that there is a $40\%$ chances that the manufacture may be simpler than expected, which will save you $$130,000.$ During this heated discussion, they also come to consensus that, there are may be a design defect, which will cause $$90,000$ of rework. Probability of this rework hapenning is $15\%.$YOUR WORK:Answer the following questions:$1.$ What is the value of the project if none of the identified risk events occur?$2.$ What is the overall expected value of the project, considering the baseline and all risks?$3.$ What is the worst$-$case value for this project?$4.$ What is the best$-$case value for this project?