The comparison of Benefits to Risks in our scenario shows the final tally:Benefit (savings) $198,460Performance Risk $100,000Design Risk $20,175Supply Risk $8,000Commercial Risk $80,000Balance $-9,715Thus the conversion is likely to result in a loss of about $10,000 in the first year ( more in subsequent years due to compounding Commercial Risk!).This loss is only true if the Performance Risk is valid which could be confirmed by RF Leakage testing. The next question should be whether to do the testing to see if the additional shielding would be necessary.Assume the shielding test will cost $15,000 to satisfactorily conduct. The probability of the extra shielding being needed is about 0.8 (4 out of 5 respondents in the questionnaire)and thus the loss of the cost of the test as we will not proceed if the shielding is needed.
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