Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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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![Problem 6-2 Present Value and Multiple Cash Flows [LO 1]
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers
to pay you $8,700 per year for 5 years.
If the discount rate is 5 percent, what is the present value of these cash flows? (Do not
round intermediate calculations and round your answers to 2 decimal places, e.g.,
32.16.)
Mc
Graw
Hill
Investment X
Investment Y
If the discount rate is 15 percent, what is the present value of these cash flows? (Do not
round intermediate calculations and round your answers to 2 decimal places, e.g.,
32.16.)
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Investment X
Investment Y
2
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3
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Transcribed Image Text:Problem 6-2 Present Value and Multiple Cash Flows [LO 1]
Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers
to pay you $8,700 per year for 5 years.
If the discount rate is 5 percent, what is the present value of these cash flows? (Do not
round intermediate calculations and round your answers to 2 decimal places, e.g.,
32.16.)
Mc
Graw
Hill
Investment X
Investment Y
If the discount rate is 15 percent, what is the present value of these cash flows? (Do not
round intermediate calculations and round your answers to 2 decimal places, e.g.,
32.16.)
<
Investment X
Investment Y
2
W
# 3
3
Q
LI
$
4
+
D
< Prev
67 dº
%
5
T
5 of 11 ⠀
Next >
&
7
* 00
8
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