PROBLEM #4 - CAPITOL INVESTMENT ANALYSIS (2 pts.) Bancroft Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $800,000 and may yield the following two expected cash flows, depending on economic conditions. Management requires investments to have a payback of two years, and it requires a 10% return on its investments. Period 1 Period 2 Period 3 Period 4 Scenario A $ 300,000 $ 350,000 $ 400,000 $ 450,000 Scenario B $ 450,000 $ 400,000 $ 350,000 $ 300,000 Required: 1) Determine the payback period for both Scenario A and Scenario B. 2) Determine the break-even time for both Scenario A and Scenario B. 3) Determine the net present value for both Scenario A and Scenario B. 4) Which scenario would give more financial benefit to Bancroft? 5) What are the causes of the differences between Scenario A and Scenario B? Explain in detail