Business, 01.07.2020 15:01, moonk7733

Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you $6,400 per year for 5 years. Requirement 1:
A. If the discount rate is 8 percent, what is the present value of these cash flows?
B. Which of these cash flow streams has the higher present value at 8 percent?
Requirement 2:
A) If the discount rate is 20 percent, what is the present value of these cash flows?
B) Which of these cash flow streams has the higher present value at 20 percent?

Answers: 3

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Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you $...