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Bond Investment: Discuss the risks and benefits of the business investing in a corporate bond. Include the necessary ethical factors; appropriate calculations, and examples to

  1. Bond Investment: Discuss the risks and benefits of the business investing in a corporate bond. Include the necessary ethical factors; appropriate calculations, and examples to support your analysis. ANSWER FROM USING THE INFORMATION BELOW. BASE ANSWER OF INFORMATION BELOW
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Financial Option 1: Purchase a \$10 Million Building Rationale for investment: The business is considering environmental, social, and corporate governance (ESG) factors as part of its investment in a new building for its headquarters. The building itself will be a Leadership in Energy and Environmental Design (LEED)-certified building. However, the new site currently has a large, inactive gas station that sold both gasoline and diesel fuel. The new site also has a large repair facility that was used for deliveries and tractor-trailer trucks for more than 50 years. Some restoration was performed on the site, but the previous owner ran out of funds before they could bring the site up to LEED standards. Four large fuel tanks remain on the site, and they will also need to be addressed per LEED standards. Assumptions to consider: - $10 million cash purchase - Building generates additional net profits after tax of $1.25 million per year - 20 year expected useful life of building - Salvage value: $1.5 million - Discount rate is 10% \begin{tabular}{|l|c|} \hline Initial Investment & $10,000,000 \\ \hline Annual Cash Inflows & $1,250,000 \\ \hline Discount Rate & 10% \\ \hline Number of Years & 20 \\ \hline Salvage Value & $1,500,000 \\ \hline \end{tabular} NPV= $864,920

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