both of those questions go together

Problem H01-01 (Points: 1.25/4). Topic: Decision making process. In Summer 2020, John Doe decided to live in a SSU on-campus doorm. He signed a dorm contract under which he was obligated to pay the room rent for the full college year. One clause stated that if he moved out during the year, he could sell his dorm contract to another student who would move into the dormitory as his replacement. The dorm cost was 55.000 for the two semesters, which John Doe had already paid. A month after he moved into the dorm, he decided he would prefer to live in the apartment. That week, after some searching for a replacement to fulfill his dorm contract, John had two offers. One student offered to move in immediately and pay John $300 per month for the eight remaining months of the school year. A ecotid student offered to move in the second semester and pay $2,500. He estimates his food cost per month is S500 if he lives in the dorm and $450 if he lives in an apartment with three other roommate. His share of the apartment rent and utilities will be $400 per month. Assume each semester is 4 12 months long. Disregard the small differences in the timing of the disbursements or receipts. (a) What are the three alternatives available to John'? (b) Evaluate the cost for each of the alternatives () What do you recommend John should do? Note: There is not a unique but different alternative solutions of this problem based on diverse engineering cotony perspectives