Your responses to all problems must contain the following to receive full credit: 1. Cash flow diagram of your problem 2. Specify the model/equation used [e.g. P=F(1+i)N ] 3. Specify the values of each parameter [e.g. i=0.05 or 5% ] Show your work for how you calculate your numerical results. 4. 5. Answer the question of the problem with a complete sentence that includes your numerical justification. 1. (14 pts) You lead a development team considering developing a software product for managing hospital surgical supply inventories. Market analysis suggests your company could make profits of $125,000 for the first year and then profits decrease by 6% annually. You will sell this software product for 4 years. To cover the software product development costs right now, your company would withdraw money from an investment account paying 7.5% APR compounded annually. What is the maximum amount of money you will recommend that your company be willing to invest now to develop this software product