The impacts of climate change are not 100% known, but you are looking at building a new plant to make pharmaceuticals to keep hospitals in stock with critical drugs and you don't want to be shutdown for long periods due to impacts of potential hurricanes on the East Coast. You have 3 scenarios below, which would you recommend based on your company MARR of 12% and a project life of 15 years. Scenario 1: Build factory 150 miles from the coast. CAPEX $40 million, Annual net benefit $6 million. 3% annual chance of 3-day storm outage at a cost of $0.2 million/day and 1% annual chance of 5-day storm outage at a cost of $0.2 million/day Scenario 2: Build a factory 100 miles from the coast, but closer to interstate highways which reduces product transportation expenses CAPEX $42 million, Annual net benefit $7 million. 6% annual chance of 3-day storm outage at a cost of $0.2 million/day and 2% annual chance of 5-day storm outage at a cost of $0.2 million/day Scenario 3: Build a factory 50 miles from the coast which is not only closer to major transportation routes, but closer to ports for raw material delivery of supplies. CAPEX $52 million, Annual net benefit $8.5 million 10% annual chance of 3 day storm outage at a cost of $0.2 million/day and 5% annual chance of a 5-day storm outage at a cost of $0.2 million/day and 1% annual chance of a 10 day storm outage at a cost of $0.3 million/day Which would you recommend A. Scenario 1 B. Scenario 2 C. Scenario 3 D. None of the Above