1) Investment X yields a payment of $8000 at the end of year 1, a payment of $8000 at the end of year 2, a payment of $8000 at the end of year 3, and a payment of $12000 at the end of year 4. Investment Y yields a payment of $15000 at the end of year 1, a payment of $8000 at the end of year 2, a payment of $2000 at the end of year 3, and a payment of $2000 at the end of year 4. What is the present value of Investment X if the interest rate is 6%?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer.

 

2) Investment X yields a payment of $8000 at the end of year 1, a payment of $8000 at the end of year 2, a payment of $8000 at the end of year 3, and a payment of $12000 at the end of year 4. Investment Y yields a payment of $15000 at the end of year 1, a payment of $8000 at the end of year 2, a payment of $2000 at the end of year 3, and a payment of $2000 at the end of year 4. What is the present value of Investment Y if the interest rate is 6%?Note: Express your answers in strictly numerical terms. For example, if the answer is $500, write enter 500 as an answer.

Answer rating: 100% (QA)

1 To find the present value of Investment X we need to discount the future cash flows t... View the full answer