The Lovejoy Hotel upgrades its conference facilities approximately every five years so that it can book$$ larger, more profitable conventions than if it had older$$ d$$cor and technologies. Managers at Lovejoy are evaluating a potential conference facilities upgrade plan that would require an initial investment of$$ $$1,200,000.$ Managers want to analyze the upgrade plan using two$$ scenarios, a most likely scenario and a$$ worst$-$case scenario. Lovejoy has a$15\%$ hurdle rate for this type of investment.