Cash flow streams having higher present value


Problem:

Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5%? If the discount rate is 22%?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Cash flow streams having higher present value
Reference No:- TGS02034564

Now Priced at $20 (50% Discount)

Recommended (92%)

Rated (4.4/5)