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 investmentusing PV approach Use a discount rate of 10 Which investment is the best and why

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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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