Cash flow streams-investment


Question: Investment X offers to pay you $2,000 per year for 10 years, whereas Investment Y offers to pay you $4,000 per year for 4 years. Which of these cash flow streams has the higher present value if the discount rate is 5%? If the discount rate is 15%?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Cash flow streams-investment
Reference No:- TGS01800181

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)