Please explain what is the highest level of initial investment, instead of the $500,000, you would make to purchase each company? Why? Give a complete explanation of the highest dollar amount you would be willing to invest for these returns.

Company 1: You are determining whether to purchase another company or firm for $500,000. The firm has projected free cash flows of $30,000 for Year 1, $50,000 for Year 2, and 80,000 for Year 3, $120,000 for Year 4, and 170,000 for Year 5. The projected terminal value at the end of Year 5 is $295,000. The firm's Weighted Average cost of Capital (WACC) is 10.0%.

Company 2: You are determining whether to purchase another company or firm for $500,000. The firm has projected free cash flows of $50,000 for Year 1, $70,000 for Year 2, and 90,000 for Year 3, $110,000 for Year 4, and 130,000 for Year 5. The projected terminal value at the end of Year 5 is $280,000. The firm's Weighted Average cost of Capital (WACC) is 10.0%.