=+P6–14 Asset valuation and risk Lothar Drake wishes to estimate the value of an asset expected to provide cash inflows of $4,000 at the end of years 1 and 2, $5,000 at the end of years 3 and 4, and $4,500 at the end of year 5. His research indicates that he must earn 4%

on low-risk assets, 6% on average-risk assets, and 10% on high-risk assets.