Question 9 has two parts. Suppose you a selecting a new vendor that inspects your facilities fire extinguishers, eye wash stations and stock first aid cabinets on a monthly basis. You could pay them an up-front, lump sum of $48,000 for three years worth of service, or pay monthly installments of $1473 for 36 months. In three years, at the end of the 36 month agreement, you will have paid $53,028. Part I (4 Points). If one were to ignore the fact that the $48,000 could be put in a high-interest investment, and simply consider inflation at 2.5% annually over the next three years, what is the future value of the $48,000 lump sum in three years? Part II (1 Point). In one or two sentences, state whether it makes sense to pay the new vendor a lump sum, cash payment of $48,000 up front, and why.