Question: Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years.

Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years.

If the discount rate is 3 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)


Present value
Investment X$
Investment Y$

If the discount rate is 14 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)


Present value
Investment X$
Investment Y$

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