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You own two annuity investments: Investment 1: Starting 3 years from today, you will receive $1,000 p.a. for 10 years. Investment 2: Starting

You own two annuity investments:  

  • Investment 1:  Starting 3 years from today, you will receive $1,000 p.a. for 10 years.  
  • Investment 2: Starting 2 years from today, you will receive $800 every year forever 

Please value each investment using PV approach. Use a discount rate of 10%.


Which investment is the best and why?


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