Question: (c) Consider two mutually exclusive alternatives A and B. Assume MARR =10% per year, the alternatives are repeatable and the study period is 20 years,

 (c) Consider two mutually exclusive alternatives A and B. Assume MARR=10% per year, the alternatives are repeatable and the study period is20 years, which alternative would you choose? Use both AW and PWmethods of analysis. (8 marks) AW of Alfernative A: Alternative should be

chosen. (d) John has purchased a bond that was issued by ABCMedical. The bond has a face value of $10,000 and will maturein eight years. The coupon rate of the bond is 8% peryear, and interest payments are made to the bondholder every quarter. John

(c) Consider two mutually exclusive alternatives A and B. Assume MARR =10% per year, the alternatives are repeatable and the study period is 20 years, which alternative would you choose? Use both AW and PW methods of analysis. (8 marks) AW of Alfernative A: Alternative should be chosen. (d) John has purchased a bond that was issued by ABC Medical. The bond has a face value of $10,000 and will mature in eight years. The coupon rate of the bond is 8% per year, and interest payments are made to the bondholder every quarter. John bought the bond five years ago at the face value and he wants to sell it now for a price that will allow him to earn an annual yield of 12% compounded quarterly. How much does John need to sell the bond for to earn his desired return? ( 4 marks)

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