1. Discuss the risks and benefits of the business investing in capital equipment. Include the necessary ethical factors, appropriate calculations, and examples to support your analysis. BASE ANSWER OFF OF THE PICTURES POSTED!!! thank you

Financial Option 2: Lease of $25 Million in Equipment Rationale for investment: The business's current equipment is efficient, but it uses a lot of electricity. The production line also creates significant waste material, including waste plastics. The business is looking into leasing newer, more environmentally friendly equipment that will still allow it to be at least as efficient in production as it is now. Assumptions to consider: - Annual cash flows generated with equipment: $4 million - Discount rate is 12% - 15 -year useful life - No salvage value \begin{tabular}{|l|c|} \hline Initial Investment & $25,000,000 \\ \hline Annual Cash Inflows & $4,000,000 \\ \hline Discount Rate & 12% \\ \hline Number of Years & 15 \\ \hline Salvage Value & $ \\ \hline \end{tabular} NPV=$2,243,458