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Which of these cash flow streams has higher present value

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Question - Premier Snowboards want to make an investment. They have shortlisted 2 investments X and Y. Investment X offers to pay them $25,000 per year for 6 years, where as Investment Y offers to pay $27,000 per year for 4 years.

Which of these cash flow streams has the higher present value if the discount rate is 2%? If the discount rate is 12%? Explain your answer.

Reference no: EM133117258

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