Scenario:As the owner of avinyl fencing company, you are making plans for two large purchases in the next3 to 5 years to achieve your business goals.Purchase 1:You plan to expand your vinyl fence company in the future, and must purchase anew warehouse facility to achieve this goal. Your insurance company is offeringyou two very attractive investment options, an ordinary annuity and an annuitydue, both compounding quarterly and paying 8% annual interest over a 5-yearperiod. Your 5-year budget includes saving $2,500.00 each quarter. To evaluatewhich option will benefit the business most, you must evaluate both annuityoptions by calculating the future value of each option and explain how theinvestment will help you to carry out your goals. Purchase 2: After careful review of your maintenance log, you also realized that you willneed to replace a fence post molding machine that sells for $45,000.00. Youestimate that you will need to purchase a new machine in 3 years’ time as thismachine reaches the end of its useful life. You plan to save for this purchase usinga sinking fund that compounds semi-annually, and earns a 12% annual rate. Your essay shouldin include the following information 1. Calculate the future value of both the ordinaryannuity and the annuity due options being offered by your insurance company.Explain the differences between these two investment options. Select the bestannuity option for your business and explain why that option is preferable.2. Calculate the sinking fund payment required forthe fence post molding machine. 3. Compare and contrast the shorter timeframe andhigher interest rate of the sinking fund with the longer term warehouse annuityoption you chose. Be sure to calculate and report how much interest you willearn from the annuity chosen for the warehouse and the amount of the sinkingfund investment. 4. Develop a plan to prioritize these twopurchases, and discuss the potential impact that these will have on the futureof your business. For example, is expanding your business more important thansaving for and paying cash for a fence post molding machine? Remember, youcould borrow money to finance the fence post molding machine when it eventuallybreaks, but financing will cost the business in finance charges.