Brown Bakery Ltd is situated in Bath that is the largest city in Summerset, England. Nellie Smith is the CFO and she is faced with a number of challenges. Today is the 18th of May and she came to office bright and early. Already when she arrived to her office with a cup of tee Gordon Hammersmith waited outside her office. Gordon is head of strategy and liked a decision regarding an investment. Upfront it was about an investment of 50 000 in a new oven. After 10 years of use the oven is expected to be sold for 5 000. The oven is to be used for a new innovative bread. The marketing department expect the cash flows, CF, to be as follows: Year 1 (Y1) 2 000, Y2 8 000, Y3 9 000, Y4 12 000, Y5 15 000, Y6 11 000, Y7 8 000, Y8 6 000, Y9 5 000 and Y10 1 000. CF to be received in the end of each year. After having a short discussion with Gordon she decided that this investment should fall in Risk-Class 4 with a risk premium of 10%. Base required rate is 5%. Nellie did a calculation and said that she was sceptical. Make the calculation Nellie did and explain her reason for being sceptical