Calculation of Present Value of Multiple Cash Flows

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Question

Present Value and Multiple Cash Flows:  Investment X offers to pay you $4,500 per year for nine years, whereas Investment Y offers to pay you $7,000 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 22 percent?

Summary

This question belongs to finance and discusses about present value of theses cash flows of a company.

Total word count: 110

 

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