Problem: You are planning to manufacture a new product. Your project estimate results in a project cost of US $590000. In addition, your analysis has come up with the following:
A 0.40 probability of a delay in receiving parts with a cost to the project of $45000.
A 0.10 probability the parts will be $50000 cheaper than expected.
A 0.40 probability that two parts will not fit together when installed, resulting in an extra $115000 cost.
A 0.20 probability that the manufacture may be simpler than expected, resulting in a $10000 savings.
A 0.10 probability of a design defect causing $7000 of rework.
A US$ is worth 1.36 CAD$.
Assuming these are the only risks on the project, what is the best case for the estimated cost in Canadian dollars of the project assuming only the "good" things actually occurred? Hint: you are estimating the best case for the project costs by assuming there is a 100% probability of the "good" risks happening (the opportunities) and 0% probability of the bad things happening (the threats). A project budget is a positive number, as in "this project is going to cost us $580,000 dollars".