The most you would be willing to pay is the present value of $12 000 per year for 10 years at a 15% discount rate. The cash flows here are in ordinary annuity form, so the relevant present value factor is ? 3. An investment offers $6125 per year for 15 years, with the first payment occurring one year from now. If the required return is 8%, what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? 4. Beagle Bay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $25 000 per year forever. If the required return on this investment is 4%, how much will you pay for the policy?