Present Value and Multiple Cash Flows Investment X offers to pay you 57.000 per year for eight
Question:
Present Value and Multiple Cash Flows Investment X offers to pay you 57.000 per year for eight years, whereas Investment Y offers to pay you 59.000 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?
Discount RateDepending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...
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Step by Step Answer:
To find the PVA we use the equation PVA C1 11 rt r At a 5 percent interest r...View the full answer
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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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