need answer in step by step Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to payyou $7,300 per year for five years.a. If the discount rate is 5 percent, what is the present value of these cash flows?Note: Do not round intermediate calculations and round your answers to 2 decimal places,e.g., 32.16.b. If the discount rate is 15 percent, what is the present value of these cash flows?Note: Do not round intermediate calculations and round your answers to 2 decimal places,e.g., 32.16.a. Investment XInvestment Yb. Investment XInvestment Y

Part a: Discount Rate of 5%Present value of Investment X at 5%: $34,255.03Present value of…

Answered: Investment X offers to pay you $5,300…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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