4) A risk averse investor is offered the choice of two risky projects: Project x retums (after one year) 450 with 30% probability, 900 with 60% probability, and 1,100 with 10% probability Project y returns (after one year) 250 with 20% probability, 850 with 70% probability, and 1,400 with 10% probability Both investments cost 725. Which project should the investor choose, and why? (15 marks) 5) You are offered an annuity that yields an income of 15,000 at the end of each year for 25 years, assuming that the interest rate is 5% compounded annually. The cost of the annuity is 215,000. Explain whether this annuity offers good value, and why? (14 marks)