Problem 6-2 Present Value and Multiple Cash Flows [LO1]

Investment X offers to pay you $5,000 per year for eight years, whereas Investment Y offers to pay you $7,100 per year for five years.

Calculate the present value for Investment X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Present value
Investment X	$
Investment Y	$

Calculate the present value for Investment X and Y if the discount rate is 15 percent. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Present value
Investment X	$
Investment Y	$