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Investment X offers to pay you $6,500 per year for 2 years at a discount rate of 4.5%, Investment Y offers to pay you $2,600
Investment X offers to pay you $6,500 per year for 2 years at a discount rate of 4.5%, Investment Y offers to pay you $2,600 per year for 6 years at a discount rate of 3%. Investment Z offers to pay you $3,500 per year for 4 years at a discount rate of 2%. Which of these cash flow streams has the lower present value ?
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