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Forst sentence says Investment X offers to pay you $6,300 per year for 9 years, whereas Investment Y offers to pay you $9,000 per year
Forst sentence says "Investment X offers to pay you $6,300 per year for 9 years, whereas Investment Y offers to pay you $9,000 per year for 5 years."
to pay you $9,000 per year for 5 years. Requirement 1: (a) If the discount rate is 8 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) (b) Which of these cash flow streams has the higher present value at 8 percent? Requirement 2: (a) If the discount rate is 20 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) (b) Which of these cash flow streams has the higher present value at 20 percent Step by Step Solution
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