Final answer:
The present value of Investment X is $4,346.67 and the present value of Investment Y is $7,128.46.
Step-by-step explanation:
To calculate the present value of cash flows, we use the formula:
PV = CF / (1 + r)n
Where PV is the present value, CF is the cash flow, r is the discount rate, and n is the number of years.
For Investment X, the cash flow is $6,100 per year for 9 years. Using the formula, we calculate the present value:
PV = $6,100 / (1 + 0.05)9 = $4,346.67
For Investment Y, the cash flow is $8,700 per year for 5 years. Using the formula, we calculate the present value:
PV = $8,700 / (1 + 0.05)5 = $7,128.46
Therefore, the present value of Investment X is $4,346.67 and the present value of Investment Y is $7,128.46.