Mutualiy exclusive investments and risk Personal Finance Problem Lara Fredericks is interested in two mutualy exclusive investments. Both invesiments cover the same fime horizon of 7. years. The cost of the first investment is $9,700, ond Lara expects equal and consecutive year-end payments of $3,400. The second imvestrent promises equal and consecuive poyments of $4.500 with an initial outay of $11,690 required. The current requiced return on the frat investment is 8.6%, and the second carries a required return of 10.6%. a. What is the net present value of tha first investment? b. What is the nec present value of the second investment? c. Being mulually exclusere, which investment should Lara choose? d. Which investment is relatively more risky? Explain. a. The net present value for project one is 1 (Round to the nowest cent) b. The net present value for propect two is 1 (Round to the niarest cent) c. Being mutualy axclusine, which irrestment should Lara choose? (Seiect from the drop-dqen menu) Using NPV as her guide, Lare should select the investment it has a higher NPV: d. Which investment is relatively more fisky? Explain. (Select from the drop-down menus) The invesiment is riskier. The higher recuired netum inples a risk factor