Problem $11(18$ points$)$

A project is being evaluated based on a break even analysis with a MARR of $7\%$ for a duration of $12$ years. The project has the following known costs:

Initial linvestment: $$1,600,000$

Annual expenses: $$400,000$

The project has the following expected costs and revenues:

Annual expenses: $$255,000$ that increase $$15,000$ per year

$-$Maintenance at year $6$ ; $$140,000$

Annual revenue: $$610,000$ that increase $$21,000$ per year

Salvage Value: $$850,000$

Determine the following:

a$.$ Using the known and expected values, determine if the project is viable.

b$.$ Data is provided for a worst$-$case scenario below. Determine if the project is vable for the worst$-$case scenario.

Annual expenes: $$405,000$ that increase $$16,000$ per year

Maintenance at year $3$: $$105,000$

Maintenance at year $6$:$$160,000$

Annual revenue: $$500,000$ that increase $$17,000$ per year

Salvage Value: $$605,000$

c$.$ Data is provided for a best$-$case scenario below. Determine if the project is viable for the best$-$case scenario.

Annual expenses: $$260,000$ that increase $$9,000$ per year

Maintenance at year $8$: $$120,000$

Annual revenue: $$700,000$ that increase $$23,000$ per year

Salvage Value: $$950,000$