These answers have to be hand written.Thank you in advance!

AUM American University Of The Middle East Problem 2 (20 points) For the below question select the correct answer by using plot and data, and explain your reasoning behind your selection. Initial - (R-E) - Useful Life Investment $3,000 - $2,000 Y-Axis, PW(12%) $1,000- -40% -30% -20% -10% 0% 10% 20% 30% 40% ($1,000)- ($2,000) X-Axis (Percent Change in Parameter) MARR 12% per year Useful life 5 years Initial investment $5,000 Receipts-Expenses (R - E) $1,500/year 2.1. (4 points) If the initial investment is increased by more than 10%, the project is profitable. Why? Explain with your own words. a) True b) False 2.2. (4 points) If the profit (R - E) is decreased to $1350, this project is not profitable. Why? Explain with your own words. a) True b) False AUM American University Of The Middle East 2.3. (4 points) If the useful life of decreased to 4 years, this project is profitable. Why? Explain with your own words. a) True b) False 2.4. (4 points) Project is more sensitive to change in profit(R-E) than change in useful life. Why? Explain with your own words. a) True b) False 2.5. (4 points) An initial investment of $5,250 is profitable. Why? Explain with your own words. a) True b) False