### Create an Account

Home / Questions / Investment X offers to pay you \$7,700 per year for 9 years,whereas Investment Y offers to

# Investment X offers to pay you \$7,700 per year for 9 years,whereas Investment Y offers to

 Investment X offers to pay you \$7,700 per year for 9 years,whereas Investment Y offers to pay you \$10,600 per year for 5years.

 Requirement1:

 (a) If the discount rate is 7 percent, what is the present value ofthese cash flows? (Enter rounded answers as directed, butdo not use rounded numbers in intermediate calculations. Round youranswers to 2 decimal places (e.g., 32.16).)

 Present value Investment X \$ Investment Y \$

 (b) Which of these cash flow streamshas the higher present value at 7 percent? (Click to select)InvestmentYInvestment X

 Requirement2:

 (a) If the discount rate is 21 percent, what is the present value ofthese cash flows? (Enter rounded answers as directed, butdo not use rounded numbers in intermediate calculations.Round your answers to 2 decimal places (e.g.,32.16).)

 Present value Investment X \$ Investment Y \$

 (b) Which of these cash flow streamshas the higher present value at 21 percent? (Click to select)InvestmentYInvestment X

Dec 04 2019 View more View Less