You work for a small, local healthcare provider. In five years, the organization plans to undertake a major upgrade to its servers and other IT infrastructure. Management estimates that it will need up to $450,000 to cover all related costs; however, as a growing organization, the goal is to pay for the upgrade with cash and not to take out loans Right now, you have $300,000 in a bank account established for Capital Investments. This account pays 6% interest, compounded annually A member of the finance department has approached you with an investment opportunity for the S300,000 that covers a five-year period and has the following projected after-tax cash flows: Year: Projected Cash Flow 1. $94,000 2. $114,000 3. $134,000 4. $114,000 5. $94,000 Based on this information, answer the following questions 1. How much money will be in the bank account if you leave the $300,000 alone until you need it in five years? 2. If you undertake the investment opportunity, what is the Nominal Payback Period? 3 Using the factors for 690, what is the Discounted Payback Period? 4. What is the Net Present Value of this investment opportunity? 5. Which option-make the investment or leave the money in a savings account-would you recommend to your CEO? Why? What additional factorsinformation might make you change your point of view? References