$5$ years. Her research indicates that she must earn $4\%$ on low$-$risk assets, $7\%$ on average$-$risk assets, and $16\%$ on high$-$risk assets.

a$.$ Determine what is the most Laura should pay for the asset if it is classified as $(1)$ low$-$risk, $(2)$ average$-$risk, and $(3)$ high$-$risk.

c$.$ All else being the same, what effect does increasing risk have on the value of an asset? Explain in light of your findings in part a$.$

a$.(1)$ The most Laura should pay for the asset if it is classified as low$-$risk is $$,($Round to the nearest cent.$)$