Answered: The proposed Ghana Airways Airline…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

The proposed Ghana Airways Airline project is being procured through a Public-Private Partnership (PPP). In the PPP procurement process, two companies (the SPVs-special purpose vehicles), ‘A’ and ‘B’ with each having 0.5% chances of selection. The risks analysis document reveals that SPV ‘A’ has 0.4 risk of performance failure, whiles SPV ‘B’ has 0.3 risk of performance failure.

Using Decision Tree Analysis, as a project manager, critically assess the options and advise on the best SPV to be chosen.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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