Investment X offers to pay you $5,300 per year for 9 years, whereas Investment Y offers to pay you $7,200 per year for 5 years.
Requirement 1: (a) If the discount rate is 7 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)
Present value
Investment X $
Investment Y $
Requirement 2:
(a) If the discount rate is 21 percent, what is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)
Present value
Investment X $
Investment Y $