Section 2 and 4 in the project outline
2. Analysis of risk of the different alternatives
Even though it was considered that both proposals are in the same risk category as their other investments, how would you assess each proposal’s risk? Justify your response. If you find necessary to reassess any of the
proposal’s risk level, would that change your estimation as to which one creates more value?
4. Analysis of uncertainties
• Analyze the sources of uncertainties in the estimations (the managers’ and yours); how confident are you about the calculations? What, if any, additional information would you require to decrease the uncertainties involved in the proposals and to make a more informed decision as to the optim