Your company located in Findlay, Ohio, has accumulated $4,000.000.00 for the construction of a new office building. The company president has asked you to discuss whether or not the company should build the office building now or in January 2017. The company has been advised that to build the office building in 2013 it will cost $4,000,000.00. If construction begins this week the building will not be completed until December 31, 2013. It will then take 3 months to rent the building, at which time the net profit will be $10,000 per month. If the company goes to the bank and borrows money to build the building, the bank will loan the company only $2,000,000 at 5% interest for 30 years. The company president is considering whether or not to put the $4,000,000.00 in a savings account until January 2017, or build the office building in 2013, either by using the entire $4,000,000 or by getting a bank loan for $2,000,000. You have been advised that the company can earn 3.5% per year interest if the money is invested until 2017. The value of office buildings in the Findlay area have been increasing at the rate of 2.5% per year. Your company president asks your opinion regarding:

The ROI on the $4,000,000.00 between now and 2016 if the money is invested rather than used to construct the office building,

2. The estimated rate of inflation between 2013 and 2017,

3. The estimated increase in value of the building between 2013 and 2017 if it is constructed

in January 2017, and

4. Is it best to construct the office building totally with company money, or to obtain a bank

loan for $2,000,000?

So, please answer the above questions, and discuss, document (with calculations),and defend the basis for your conclusions regarding the answers to the above questions.