not plan Momentor risk Project Risk Process questions 1. Discuss the project risk process (800-1500 words) 2. ABC company is considering whether to develop and market a new product. Development costs are estimated to be ETB 18,000,000, and there is a 0.80 probability that the development effort will be successful and a 0.2 probability that the development effort will be unsuccessful. If the development is successful, the product will be marketed and it is estimated that: a. If the product is very successful profits will be ETB 5,000,000 b. If the product is moderately successful profits will be ETB 1,000,000; c. If the product is a failure, there will be a loss of 2,000,000. Each of the above profit and loss calculations is after taking into account the development costs of ETB 18 000, 000. The estimated probabilities of each of the above events are as follows: Very successful 0. 5 . Moderately successful 0.3 . Failure 0.2 Required: a. Build the decision tree and calculate the expected monetary value. b. Comment on the decision tree as a quantitative risk analysis technique EMV V. Sue Mod - Suce 0 . 3 - 21060, 070 Failure 0 . 2