Investment X offers to pay you $5,500 per year for 9 years, whereas Investment Y offers to

Question:

Investment X offers to pay you $5,500 per year for 9 years, whereas Investment Y offers to pay you $8,000 per year for 5 years. Which of these cash flow streams has the higher present value if the discount rate is 6 percent? If the discount rate is 22 percent?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...