A company planning to borrow $10.5 million for a plant expansion is not sure what the interest rate will be when it applies for the loan. The rate could be as low as 10% per year or as high as 12% per year. The company will move forward with the project only if the annual worth of the expansion is below $5.7 million. If the M&O cost is fixed at

$3.1 million per year and the salvage will be

$2 million if the interest rate is 10% and $2.5 million if it is 12%, is the decision to move forward with the project sensitive to the interest rate? Use a 5-year study period.