Question
Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years.
Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. |
If the discount rate is 3 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 14 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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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
