Question: How would I go about solving these problems using a Calculator BA II Plus. Using N, I/Y, PV, PMT, FV etc Investment X offers to

 How would I go about solving these problems using a Calculator

How would I go about solving these problems using a Calculator BA II Plus.

Using N, I/Y, PV, PMT, FV etc

Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,400 per year for 5 years. Requirement 1: (a) If the discount rate is 7 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Investment X Investment Y Present value $ 39,742.92 $ 34,441.66 (b) Which of these cash flow streams has the higher present value at 7 percent? Investment X Requirement 2: (a) If the discount rate is 23 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Present value 22,405.92 Investment X Investment Y (b) Which of these cash flow streams has the higher present value at 23 percent? ((Click to select)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!