Investment X offers to pay you $5,500 per year for 9 years, whereas Investment Y offers to pay...

Present value of cash flows is computed as: (Cashflow x (1-(1+i)^-n))/i

Investment X

if discount rate is 5%:

PV = (Cashflow x (1-(1+i)^-n))/i

PV = $5,500 x (1-(1.05)^(-9))/ 0.05

PV = $39,093.02

if discount rate is 15%:

PV = (Cashflow x (1-(1+i)^-n))/i

PV = $5,500 x (1-(1.15)^(-9))/ 0.15

PV = $26,243.71

Investment Y

if discount rate is 5%:

PV = (Cashflow x (1-(1+i)^-n))/i

PV = $7,900 x (1-(1.05)^(-9))/ 0.05

PV = $56,151.79

if discount rate is 15%:

PV = (Cashflow x (1-(1+i)^-n))/i

PV = $7,900 x (1-(1.15)^(-9))/ 0.15

PV = $37,695.51