A favorable roofing subcontractor quote has been received and is being considered. although the subcontractor stated in their quote that they are not responsible for any underground property damage discovered during the roofing project. This sentence concerns your company's management and they set out to investigate the financial risk of taking on the roofing project. Management decides to quantify the risk as a function of potential subcontractor change orders. assuming that the subcontractor agrees to take on additional scope (ie. repair any underground property damage issues). The pertinent facts of the potential project include: Received Subcontractor Quote: Consensus on Subcontractor Change Order Risk: Annual Benefits (or Cost Savings) of the project: Useful Life: MARR: $ 24,000 $ +/- 8,000 $ 4,000/yr (ceiling repair cost savings) 10 years 4 %/yr a. (10) Is the nominal base project (without any change orders) acceptable? Conduct a present worth analysis. b. (15) Conduct a present worth sensitivity analysis concerning the specified project risk. Is the project acceptable within the specified change order financial risk? C. (5) What is the maximum value of change orders that could be absorbed by this project and have the project remain a good project? Assume any change orders are executed at the beginning of the project (Year 0).