A wealthy business angel is presented with a new venture idea. The start-up is looking for investors and promises a payment of $1,000,000 in 10 years from now. The investment will make no other payments. The business angel figures that this investment sounds fairly risky but might take a shot at it for a reasonable rate of return. After some analysis, he estimates that another investment of similar risk would pay a rate of return of 14% p.a.. a) How much should he be willing to pay for this investment? b) What is the present value of the investment under scrutiny if the alternative investment pays 14% compounded semiannually