Investment X offers to pay you $4,300 per year for 9 years, whereas Investment Y offers to pay you $6,100 per year for 5 years. a. If the discount rate is 6 percent, what is the present value of these cash flows?

Present value of investment X=$29,247.28

Present value of investment Y=$25,695.42

Explanation:

Since the investment X is paying the $4,300 per year for the period of the 9 years, therefore, the present value of the cash flows pertaining to the investment X shall be determined through present value of annuity formula as follows:

Present value of investment X=R[1-(1+i)^-n/i}

Where

R=amount that investment X is giving per year=$4,300

i= Interest rate per year=6%

n=number of years=9

Present value of investment X=$4,300[1-(1+6%)^-9/6%}=$29,247.28

Since the investment Y is paying the $6,100 per year for the period of the 5 years, therefore, the present value of the cash flows pertaining to the investment Y shall be determined through present value of annuity formula as follows:

Present value of investment Y=R[1-(1+i)^-n/i}

Where

R=amount that investment Y is giving per year=$6,100

i= Interest rate per year=6%

n=number of years=5

Present value of investment Y=$6,100[1-(1+6%)^-5/6%}=$25,695.42

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

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