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Investment X offers to pay you $5,700 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 $5,700 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. a. If the discount rate is 5 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. If the discount rate is 23 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. a. Present value of Investment X at 5 percent Present value of Investment Y at 5 percent b. Present value of Investment X at 23 percent Present value of Investment Y at 23 percent
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