5-6. (Present value of an annuity) what is the present value of the following annuities? A. $2,500 a year for 10 years discounted back to the present at 7 percent B. $70 a year for 3 years discounted back to the present at 3 percent C. $280 a year for 7 years discounted back to the present at 6 percent D. $500 a year for 10 year for 3 years compounded annually at 2 percent 6-4. (Required rate of return using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.2 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 16 percent. b. Why is the rate you compute a fair rate