Billy Anderson wishes to choose the better of two equally costly cash flow streams: annuity X and annuity Y. X is an annuity due with a cash inflow of $9,000 for each of 6 years. Y is an ordinary annuity with a cash inflow of $10,000 for each of six years. Assume that Billy can earn 15% on his investments.

1) On a purely subjective basis, which annuity do you think is more attractive? Why? 2) Find the future value at the end of year 6 for both annuities. 3) Use your findings in Question 2 to indicate which annuity is more attractive. Why? Compare your finding to your subjective response in Question 1.