Mr. B wishes to choose the better of two cash flows series: annuity X and annuity Y.X is an annuity due with cash inflows of E9,000 for each of 6 years. Y is an ordinary annuity with a cash inflow of .10,000 for each of 6 years. Assume that Mr. B can earn 15% on his investments.

Questions:

Find the future value at the end of year 6 for both annuities. (ii) On a purely subjective basis, which annuity do you think is more attractive/ Why?