Question
Investment X offers to pay you $6,900 per year for 9 years, whereas Investment Y offers to pay you $9,300 per year for 5 years.
Investment X offers to pay you $6,900 per year for 9 years, whereas Investment Y offers to pay you $9,300 per year for 5 years.
If the discount rate is 7 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.
If the discount rate is 21 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.
Investment X offers to pay you $6,900 per year for 9 years, whereas Investment Y offers to pay you $9,300 per year for 5 years.
If the discount rate is 7 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.
If the discount rate is 21 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 7%
Present value of investment Y at 7%
B. Present value of investment X at 21%
Present value of investment Y at 21%
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Risk Management And Financial Institutions
Authors: John Hull
1st Edition
0132397900, 9780132397902
