XYZ operates restaurants in Michigan. The objective of its managers is to maximize shareholder value. The firm is evaluating the Ann Arbor project, which involves building a new restaurant in Ann Arbor. Which assertion is true based on the information given in the question and the following table on the project? **please explain as well

Base-case NPV(Based on final estimates and expectations	$63,000
Value Created if FDA classifies pasta as bad food (based on scenario analysis	-$236,000
Value Created if worst-case taxes occur (based on sensitivity analysis)	-$99,000
Value Created if best-case taxes occur (based on sensitivity analysis)	$81,000
Probability that project will create more than $0 of value (based on simulation analysis)	14.8%

1. XYZ should be indifferent between accepting and rejecting the Ann Arbor project

2. XYZ should accept the Ann Arbor Project

3. XYZ should reject the Ann Arbor Project

4. It is unclear because the information provided is contradictory

5. It is unclear because the cost of capital is not given