Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? Input area: Payment for X Number of years for X Payment for Y Number of years for Y O Discount rate 1 Discount rate 2 $5,300 8 $7,300 5 5% 15%
Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? Input area: Payment for X Number of years for X Payment for Y Number of years for Y O Discount rate 1 Discount rate 2 $5,300 8 $7,300 5 5% 15%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
please provide answer in PMT form for excel. Unsure how to input it
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Investment X offers to pay you $5,300 per year for eight years, whereas
Investment Y offers to pay you $7,300 per year for five years. Which of these
cash flow streams has the higher present value if the discount rate is 5
percent? If the discount rate is 15 percent?
Input area:
Payment for X
Number of years for X
Payment for Y
Number of years for Y
Discount rate
Discount rate
8
9
10
11
12
13 (Use cells A6 to B11 from the given information to complete this question.Your answers should be positive values.)
14
15 Output area:
16
$5,300
8
17 Value of X at 5%
18 Value of Y at 5%
19 Value of X at 15%
20 Value of Y at 15%
21
22
$7,300
5
5%
15%
PMT(rate, nper, pv, [fv], [type]) ^
=PMT(](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9870bfeb-e26e-42f8-8342-bb7dac6347ce%2Faeda3d3a-b8c4-4703-943a-c22fff866726%2F5226r1l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2
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Investment X offers to pay you $5,300 per year for eight years, whereas
Investment Y offers to pay you $7,300 per year for five years. Which of these
cash flow streams has the higher present value if the discount rate is 5
percent? If the discount rate is 15 percent?
Input area:
Payment for X
Number of years for X
Payment for Y
Number of years for Y
Discount rate
Discount rate
8
9
10
11
12
13 (Use cells A6 to B11 from the given information to complete this question.Your answers should be positive values.)
14
15 Output area:
16
$5,300
8
17 Value of X at 5%
18 Value of Y at 5%
19 Value of X at 15%
20 Value of Y at 15%
21
22
$7,300
5
5%
15%
PMT(rate, nper, pv, [fv], [type]) ^
=PMT(
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