An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity cost is 8% compounded semi-annually. The present value of this investment is: O a. $13,323.26 Ob. $19,639.28 O c. $4,762.53 Od. $9,666.46 e e. $7,317.16 1.5 Marks Suppose someone offered you the choice of two equally risky annuities, each paying $10,000 per year for five years. One is an ordinary annuity; the other is an annuity due. Which of the following statements is most correct? Assume that the prevailing interest rate is greater than z ero. Oa. The present value of the annuity due exceeds the present value of the ordinary annuity, while the future value of the annuity due is less than the future value of the ordinary annuity Ob Insufficient information. Answer depends on the prevailing interest rate OC. The present value of the annuity due exceeds the present value of the ordinary annuity, and the future value of the annuity due also exceeds the future value of the ordinary annuity Od. If interest rates increase, the difference between the present value of the ordinary annuity and the present value of the annuity due remains the same Oe. The present value of the ordinary annuity must exceed the present value of the annuity due, but the future value of an ordinary annuity may be less than the future value of the annuity due