PepsiCo wants to make an investment. They have shortlisted 2 investments X and Y. If Investment X offers to pay them $9,

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answerhappygod
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PepsiCo wants to make an investment. They have shortlisted 2 investments X and Y. If Investment X offers to pay them $9,

Post by answerhappygod »

PepsiCo wants to make an investment. They have shortlisted 2
investments X and Y. If Investment X offers to pay them $9,000 per
year for 9 years, whereas Investment Y offers to pay you $10,000
per year for 8 years. Which of these cash flow streams has the
higher present value if the discount rate is 2%? If the discount
rate is 25%? Explain your answer
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