Assume an investment of $150,000 at the present time. There are two possibilities for this project:

Success: The annual revenue of $60,000 for 12 years (from year 1 to 12) with no salvage value.

Failure: Zero annual revenue and the salvage value of 75,000 at the end of year 1.

What is minimum success probability that project can be economically satisfactory? In other words, what is the breakeven probability. Assume a minimum interest rate of return (i*) of 15%.

Please use excel to solve this and please show/mention the formulas used.