Question
Investment X offers to pay you $8,100 per year for 9 years, whereas Investment Y offers to pay you $11,000 per year for 5 years.
Investment X offers to pay you $8,100 per year for 9 years, whereas Investment Y offers to pay you $11,000 per year for 5 years. If the discount rate is 8 percent, what is the present value of these cash flows?
Investment X present value=?
Investment Y present value=?
If the discount rate is 23 percent, what is the present value of these cash flows?
Investment X present value=?
Investment Y present value=?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
