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# Assignment help 1878

Can someone tell me if i did this correctly and if not what I’m doing wrong?

Investment X offers to pay you \$4,700 per year for eight years, whereas Investment Y offers to pay you \$6,700 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?

Investment X at 5% discount rate = \$4700/1.05^8 = \$3181.14

Investment X at 15% discount rate = \$4700/1.15^8 = \$1536.43

Investment Y at 5% discount rate = \$6700/1.05^5 = \$5249.62

Investment Y at 15% discount rate = \$6700/1.15^5 = \$3331.08

Investment Y has higher present value for both discount rates

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