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2 20 points Mr. Davies considers to invest in financial market. Currently, there are two options for him to consider and market discount rate is

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2 20 points Mr. Davies considers to invest in financial market. Currently, there are two options for him to consider and market discount rate is 10% for all assets Option One A 4-year delayed annuity with the first annual payment 1,200 due in 4 years time. The current market price of this annuity is 3,000 Option Two: A 5-year ordinary annuity with the first annual payment 1,500 due in 1 year from now. The current market price of this annuity is 5 200 Please advise Mr. Davies which option(s) he should invest. Assuming he has sufficient wealth to invest in both options O Both Option One and Option Two Neither Option One nor Option Two Option One only Option Two only

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