Question
Investment X offers to pay you $7,500 per year for 9 years, whereas Investment Y offers to pay you $10,200 per year for 5 years.
| Investment X offers to pay you $7,500 per year for 9 years, whereas Investment Y offers to pay you $10,200 per year for 5 years.
A- If the discount rate is 6 percent, what is the present value of these cash flows? Investment X:-????? Investment Y:-?????
B-If the discount rate is 22 percent, what is the present value of these cash flows? Investment X:-????? Investment Y:-?????
Explain it please
|
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Handbook Of Heavy Tailed Distributions In Finance
Authors: S.T Rachev
1st Edition
0444508961, 9780444508966
