ASAP!! ASAP (Professional work and answer for good rate) Question 1: You want to purchase a bond that has a face value o

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ASAP!! ASAP (Professional work and answer for good rate) Question 1: You want to purchase a bond that has a face value o

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ASAP!! ASAP (Professional work and answer for good
rate)
Question 1: You want to purchase a bond that
has a face value of $30,000 with an 8% nominal bond rate, payable
semiannually and maturing in 20 years. You would like to earn 10%.
How much should you pay for this bond? (40 points)
Question 2: ACME is considering a purchase of a
new production line with 5 years of expected life. The management
is going to consider 4 proposals and set its MARR to 15%. Use
incremental analysis to evaluate the alternatives
from the data displayed in a table below. Which alternative should
be selected using the IRR and PW methods with incremental analysis?
(Hint: Make sure you arrange the alternatives in the correct order
before the analysis). (40 points)
Proposal 1
Proposal 2
Proposal 3
Proposal 4
Capital investment
$20,000
$27,500
$23,000
$29,000
Net annual income
$5,000
$7,700
$6,000
$8,000
Market value
$8,000
$9,500
$9,000
$10,000
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