Your financial advisor calls you and tells you that he has this great investment opportunity. If you invest

$$10,000$ today, you will receive $$4,000$ each year for the next three years. The market requires a $10\%$

annualized return for investment of similar risk.

This is not a good investment for you. You will only earn an annualized $9\mathrm{.}7\%$ return on this

investment, less than the $10\%$ return required.

This is not a good investment for you. You will earn a present value of $$9,500$ on your investment,

less than the $$10,000$ your financial advisor asked.

This is a good investment for you. You will only get $$3,333\mathrm{.}33$ per year for the next three years for

the $$10,000$ you own now.

This is a good investment for you. You will receive $$12,000$ total in three years. That's enough to

compensate for the risk.