I don't understand this. Please thoroughly explain. Im trying to complete with paper and pencil. Please fully explain how I show calculate not understanding how.P$6-17$ Asset valuation and risk Laura Drake wishes to estimate the value of an asset

expected to provide cash inflows of $$3,000$ per year for each of the next four years and

$$15,000$ in five years. Her research indicates that she must earn $4\%$ on low$-$risk assets,

$7\%$ on average$-$risk assets, and $14\%$ on high$-$risk assets.

a$.$ Determine what is the most Laura should pay for the asset if it is classified as $(1)$

low$-$risk $(2)$ average$-$risk, and $(3)$ high$-$risk.

b$.$ Suppose that Laura is unable to assess the risk of the asset 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 else being the same, what effect does increasing risk have on the value of an

asset? Explain your answer in light of your findings in part a$.$