Question
Investment X offers to pay you $5,600 per year for 9 years, whereas Investment Y offers to pay you $8,200 per year for 5 years.
| Investment X offers to pay you $5,600 per year for 9 years, whereas Investment Y offers to pay you $8,200 per year for 5 years. |
| If the discount rate is 4 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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Public Finance In Theory And Practice
Authors: Holley Ulbrich
1st Edition
0324016603, 978-0324016604
