Please explain thank you!

Montreal Comedy Clubs Limited - It has $500,000 investable fun to invest in either "Bond" or "Share". The firm's cost of capital is 12% As the table below indicates, MCC should consider making the share investment because this will allow MCC to have more money after eighteen months. However, your manager directs you to calculate the present value of cash inflow of Bond and Share respectively and compare on present value basis Explain why on present value terms Bond may or may not be higher than share. Semi- annual Periods 1 2 3 Bond Investment Semi- Future annual Value Bond Factor @ Interest 12%/2 7% =6% $35,000.00 1.1236 35,000.00 1.0600 35,000.00 1.0000 Future Value $39,326.00 37,100.00 35,000.00 Quarterly Periods 1 2 3 4 5 6 Share Investment Future Value Factor @ Quarterly 12%/4 Dividend = 3% $12,500.00 1.1593 12,500.00 1.1255 12,500.00 1.0927 12,500.00 1.0609 12,500.00 1.0300 12,500.00 1.0000 531,250.00 1.0000 Future Value $14,491.25 14,068.75 13,658.75 13,261.25 12,875.00 12,500.00 531,250.00 500,000.00 1.0000 500,000.00 Principal Future value $611,426.00 $612,105.00