The Lovejoy Hotel upgrades its conference facilities approximately every five years so that it can book larger, more profitable conventions than if it had older decor and technologies. Managers at Lovejoy are evaluating a potential conference facilities upgrade plan that would require an initial investment of $1,200,000. Managers want to analyze the upgrade plan using two scenarios, a most likely scenario and a worst-case scenario. Lovejoy has a 15% hurdle rate for this type of investment. i (Click the icon to view information on the two scenarios.) Here is the basic Excel worksheet format that Lovejoy uses to analyze investments: (Click the icon to view the performance report.) Read the requirements. 1. In the Excel worksheet pictured above, what values or formulas would be entered in the specified cells in the following table? (Use parentheses or a minus sign for cash outflows.) Scenario #1 Scenario #2 Cell Value or Formula Cell Value or Formula B2 E2 B3 E3 B4 E4 B5 E5 B6 E6 B7 E7 B9 E9 B10 E10Scenario #1 is the most likely scenario. lf Lovejoy chooses this upgrade plan. it expects that total revenue will increase by $720,000 in Year 1: $475000 in Year 2. $310000 in Year 3. $205000 in Year 4, and $125,000 in Year 5. After five years. Lovejoy expects that it will be able to sell the furniture and fixtures purchased during this facility upgrade for $75000 and embark on another upgrade. Scenario #2 is the worst case scenario. Under the worst case scenario. Lovejoy will see total revenue increase by $612000 in Year 1 . 5404000 in Year 2, 5248000 in Year 3. $208000 in Year 4. and $110000 in Year 5. After five years in this worstcase scenario. Lovejoy assumes a residual value of zero for the furniture and fixtures from the upgrade. A B C D E Scenario #1 Scenario #2 2 Cost Cost 3 Year 1 Year 1 4 Year 2 Year 2 5 Year 3 Year 3 6 Year 4 Year 4 7 Year 5 Year 5 8 9 IRR after 3 years= IRR after 3 years= 10 IRR after 5 years= IRR after 5 years=