Asset Valuation and Risk problem

Assot valuation and risk Personal Financo Problem Lmura Drake wishes to estimnte the value of an asset expected to provide cash infows of 51,900 for each of the nert 4 years and $10,884 in As yearn. Her research indicatos that she must earn 4% on loweritk assets. 7% on averagerisk assees, and 14% on high risk atsits. a. Delormine what is the most Lauru should pay for the asset if t is class fed as (1) law itisk (2) areragerisk, and (3) high risk b. Suppose Laura is unable to assess the risk of the asset and wants to be cortain she'v making a good dack, On the basis of your findiogs in part a. what is the most she should pay? Wiy? c. As elie being the same, what eflect does increasing risk have on the value of an nsset? Expain in light of your findegs in pait a.. 3. (1) The most Laura should pay for the asset if it is clasifed as low rivkis 3 (Round to the nearest cent)