Which of the following investments has a higher present value, assuming the same (strictly positive) interest rate applies to both investments? Year Investment X Investment Y $5,000 $7,000 $9,000 $11,000 $9,000 $7,000 $5,000 1 3 4 $11,000 Select one: a. Investment X has a higher present value. b. Investment Y has a higher present value. c. Investment X and Investment Y have the same present value, since the total of the cash flows is the same for both d. No comparison can be made-we need to know the interest rate to calculate the present value

Which of the following investments has a higher present value, assuming the same (strictly positive) interest rate applies to both investments? Year Investment X Investment Y $5,000 $7,000 $9,000 $11,000 $9,000 $7,000 $5,000 1 3 4 $11,000 Select one: a. Investment X has a higher present value. b. Investment Y has a higher present value. c. Investment X and Investment Y have the same present value, since the total of the cash flows is the same for both d. No comparison can be made-we need to know the interest rate to calculate the present value

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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