Question: Problem 6-2 Present Value and Multiple Cash Flows [LO 1] Investment X offers to pay you $5,200 per year for 9 years, whereas Investment Y

Problem 6-2 Present Value and Multiple Cash Flows [LO 1]

Investment X offers to pay you $5,200 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years.

If the discount rate is 5 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 15 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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