1. Spider Diagram (5 points) Answer the following questions based on the figure and these most likely estimates. MARR Project Life Initial Investment Revenues Expenses (R-E) 12% per year 5 years $5,000 $1,500 per year Present Worth @ 12% $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 -30% -20% -10% 0% 10% 20% 30% 40% -$500-40% $1,000 $1,500 $2,000 Percent Change in Parameters ---Investment (R-E) ---Life a. If the initial investment is increased by 10%, the project is acceptable. (1 point) True False b. If (R-E) is decreased by 15%, this project is not acceptable. (1 point) True False c. The project still meets the MARR if the project life shortens to three years. (1 point) True False d. This project (based on the most likely estimates) is acceptable. (1 point) True False e. If the initial investment is $6,000, the project is acceptable. (1 point) False True