Bought a delivery truck and agreed to pay $60,600 at the end of three years. Rented an office building and was given the option of paying $10,600 at the end of each of the next three years or paying $28,600 immediately. Established a savings account by depositing a single amount that will increase to $91,200 at the end of seven years. Decided to deposit a single sum in the bank that will provide 10 equal annual year-end payments of $40,600 to a retired employee (payments starting December 31 of this year).

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?