On January 4, 2021, you have the opportunity to upgrade your existing computer equipment that will increase the efficiency of your business. Your current technology is old, outdated, and very slow. It is causing your employees and clients significant stress.

1. You need to spend about $50,000 to update all of your computers, company cell phones, tablets, networks, and other technology related expenses.

2. Currently you have $150,000 in your business banking savings account. The bank pays you about 2% interest per year.

3. You can obtain a bank loan for $50,000. The bank charges you 4% per year and you will have to pay the loan off in three years.

4. Forecasting your sales for 2021, you are thinking you will be able to put into your savings account, an additional $5000 a month which equals $60,000 for year ending 2021. You then think you could possibly wait until 2022 to update your computers. But you take the risk of equipment failure and repair.

5. Another option is to take $25,000 out of your business savings and then obtain a bank loan of $25,000 with a rate of 4.5%.

What would you do and why

which of the three options are the best and state why.