Question

Mr. Qasim is considering the possibility of opening a small tea cafe on IU street, a few blocks from the university. He has located a good mall that attracts students. His options are to open a small shop, a mediumsized shop, or no shop at all. The market for tea cafe can be good, average, or bad. The probabilities for these three possibilities are 0.2 for a good market, 0.5 for an average market, and 0.3 for a bad market. The net profit or loss for the small shop and medium-sized shop; for the good market condition is 75000/= and 100000/= respectively; for the average market condition is 25000/= and 35000/= respectively; for bad market condition a loss of 40000/= and 60000/= respectively. Building no shop at all yields no loss and no gain.

• Perform sensitivity analysis for this scenario.
• Assume that Mr. Qasim has to have a finance deal with an investor. Considering that the investor is an analytical type of person, how is he going to present his project plan to him. Give short recommendations.
• What PMBOK knowledge areas are available in the given scenario to open the tea caf. Give short justifications. Show all calculation where needed