Asset valuation and risk Pecsonal Firance Problem Laura Drake wishes to estumate the value of an asset expected to provide casti irifows of $4.200 for each of the noxt 4 yoars and 518,872 in 5 years. Her research indicates that she must earn 4% on low-risk assets, 7 the on average-risk assets, and 13% on hegh-risk assets a. Determine what is the most Laura should pay for the arset if it is classifed as (1) low.tisk, (2) average-risk, and (3) high-risk b. Suppose Lauta is unable to assess the risk of the assef and wants to be certain she's making a good deal On the basis of your findings in part a. what is the most she should pay? Why? c. All oise being the same, what effect does increasing rick have on the value of an asset? Explain in light of your findings in part a 3. (1) The most Laura should pay for the asset if it is classified as low-fisk is 1 (Round to the nearest cent)