PLEASE ANSWER THIS QUIESTION I PROMISE WILL GIVE YOU THUMBS UP.

The Foxson company has a business unit in the field of environmental quality monitoring. This year the business unit won a sponsored project to provide water quality sampling services to all companies in industrial estates. The MARR for this project is 10% per annum with a study period of 8 years. Last month, the service purchased all the necessary lab equipment for full internal testing and analysis.

There are two options for running this project: a. The first option: The project will be developed directly by this business unit. The business unit has assets in the form of equipment and supplies that initially cost $275,000 (considering 8 years of age), an employee annual salary of $345,000, an annual operating cost of $30,000, and an average sample cost of $35. At the end of the project, there is no significant salvage value for the equipment and supplies currently owned.

b. The second option: The business unit considering a subcontractor company to take over this function on a per-sample basis. If this work is outsourced to this subcontractor, the company should consider: Average cost of $100 per sample for the first 5 years, increasing to $115 per sample for the 6th, 7th, and 8th years. Based on the data above: (a) Define break event analysis between two options. (b) Calculate the AW curves for both test load options between 0 and 6000 per year in increments of 1000 tests. Use a spreadsheet to graph and conduct the calculation. Based on the graph result, what is the estimated break-even amount? (c) If the cost per sample offered by the subcontractor is reduced by 25%, is this option much better than the first option? Draw the graph.