Problem #1 GC Ventures is looking into buying a new business to add to its investment portfolio of companies. Finally, they have come up with two finalists. Company #1 could be acquired at a cost of $3,000,000 that will generate a cash flow of $275,000 per year for the next 16 years. GC Ventures forecasts that the interest rate could be approximately 8%. Company #2 could be acquired at a cost of $200,000 that will generate a cash flow of $75,000 per year for the next 4 years. GC Ventures forecasts that the interest rate could be approximately 14%. Some of the senior management members from GC Ventures are concerned that acquiring Company #1 might not add value to the organization, especially if considered in next year's financials. On the contrary, some of the other managers believe that investing in a low-cost option like Company #2 is the way to go. GC Ventures' CEO was not happy with the meeting since they could not reach a decision. He decided to meet again in a week and tasked you to come prepared with an action plan. What company should GC Ventures acquire and why? Show your calculations to support your