Problem 3 You are choosing between two investments of equal risk. You believe that given the risk, the appropriate discount rate to use is 9%. Your initial investment (outflow) for each is $6,000. The first investment is expected to pay out $10,000 three years from now; the second investment is expected to pay out $13,500 five years from now. (a) Which investment should you chose and why? Show calculations. ( 8 marks) (b) You are choosing between the same two investments, but you have reassessed their risks. You now consider the five-year investment to be more risky than the first and estimate that a 15% return (discount rate) is required to justify making this investment. The first investment remains at 9%. Which investment should you choose and why? Show calculations