(Solved) Investment X offers to pay you \$4,700 per year for eight years, whereas Investment Y offers to pay you \$6,700 per year for five years.

Investment X offers to pay you \$4,700 per year for eight years, whereas Investment Y offers to pay you \$6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? IÂ  don't know how to do it in excel I have the answer tho can someone put it in excelÂ Â

• At a 5 percent interest rate:

Â Â Â Â Â Â Â  [emailÂ protected]%:Â  PVA = \$4,700{[1 â€“ (1/1.05)8 ] / .05 } = \$30,377.10

Â Â Â Â Â Â Â  [emailÂ protected]%:Â Â  PVA = \$6,700{[1 â€“ (1/1.05)5 ] / .05 } = \$29,007.49

• And at a 15 percent interest rate:

Â Â Â Â Â Â Â  [emailÂ protected]%: PVA = \$4,700{[1 â€“ (1/1.15)8 ] / .15 } = \$21,090.41

Â Â Â Â Â Â Â  [emailÂ protected]%: PVA = \$6,700{[1 â€“ (1/1.15)5 ] / .15 } = \$22,459.44

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