Question: I will do appreciate it if you answer this question with full details. Thank You! Q) You are considering investing in two different instruments. The

I will do appreciate it if you answer this question with full details. Thank You!

Q) You are considering investing in two different instruments. The first instrument will pay nothing for three years, but then it will pay $20,000 per year for four years. The second instrument will pay $20,000 for three years and $30,000 in the fourth year. All payments are made at year-end. If your required rate of return on these investments is 8 percent annually, what should you be willing to pay for? And which instrument would be preferable for you? why?

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