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Investment x offers to pay you $ 4 , 2 0 0 per year for eight years, Whereas Investment Y offers to pay you $

Investment

x

offers to pay you $

4, 200

per year for eight years, Whereas Investment

Y

offers to pay you $

6, 100

per year for five years. Which of these cash flow streams has the

higher present value if the discount rate is

6

percent? If the discount rate is

16

percent?

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