(5 marks) The following Monte Carlo scatter plot is taken from a published paper. The project'crret budget maximum Project Cost) is Te (about 155). The project's current deadline (maximum Project Duration) is Ts about 90). Project Cost 300 T 280 260t 240 220 200 180I 160 140 120 230 180 Project duration 80 Ts Management understands that the current deadline and budget are too restrictive. They offer to either raise the budget (increase maximum Project Cost), OR allow a later deadline (increase maximum Project Duration), but not both. Should the project lead choose the higher budget, or later deadline? Briefly explain your reasoning. Higher Budget or Later Deadline? Reasoning: curves, all for the same project, come from a published b. (5 marks) The following Monte Carlo cost acceptability paper. NPV is 'Net Present Value', in units of 10,000 Euros, Payback is the simple payback period, IRR is the Internal Rate of Return, and Rol is Return on Investment (you may think of it as Return on Assets) 0.8 0.6 0.4 0.2 0.8 0.6 0.4 0.2 0 2 NPV (Euros)x 10 Payback (Yrs) 0.8 0.6 0.4 0.2 0.8 0.6 0.4 0.2 0 -0.100.1 0.2 0.3 0.4 ROI IRR Suppose your firm has a MARR of 5% per year, and a maximum(non-discounted) payback period of 4 years. Would your firm consider the project deseribed by the cost acceptability curves above to be a worthwhile project? Briefly explain your reasoning. Is this project worthwhile? (Yes or No) Reasoning