Question 2 (Total marks= 10) (a) An investor is considering the purchase of two investments at the end of Year 0 that will yield the following cash flows: Year End of Year Cash Flow for Project X End of Year Cash Flow for Project Y Year 1 $2,000 $1,000 Year 2 $3,000 $3,000 Year 3 $4,000 $5,000 Year 4 $5,000 $2,000 2 If the appropriate discount rate for these investments is 10%, what will this investor be willing to pay for the investments? (7 marks) (b) Suppose you wish to invest $2,000 today so that you have $4,000 six years from now. What must the annual interest rate be in order to achieve your goal if interest is compounded quarterly? (3 marks)