Question
5. Investment X offers to pay you $6,000 per year for 9 years, whereas Investment Y offers to pay you $8,200 per year for 5
5.
| Investment X offers to pay you $6,000 per year for 9 years, whereas Investment Y offers to pay you $8,200 per year for 5 years. |
| If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Present value | |
| Investment X | $ |
| Investment Y | $ |
| If the discount rate is 23 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Present value | |
| Investment X | $ |
| Investment Y | $ |
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
