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Posted on Sep 29, 2024

Investment X offers to pay you $7,900 per year for 9 years, whereas Investment Y offers to pay you $10,800 per year for 5 years.

Requirement 1:

(a)

If the discount rate is 20 percent, what is the present value of these cash flows?

(b)

If the discount rate is 8 percent, what is the present value of these cash flows?

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