[Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? 2. X Year Y -$5000 -$5000 0 -3000 2000 4000 2000 2000 2000 4000 3 4000 Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. 3. Stated Value Bond Current Market Price with Commission Annual Interest Payment $67 $1000 $1000 GenDev RJR $480 $630 $98 a) Construct a choice table for interest rates from 0 to 100% b) Which, if any, of the bonds should you buy if your MARR is 20% c) Are there professional ethics standards for stock brokers in the U.S.? What are some common ethical pitfalls 4. [Problem 8-21] A firm is considering the following alternatives., as well as a fifth choice, do nothing. Each alternative has a 5-year useful life 2 $130,000 38,780 15% 3 4 Initial Costs Uniform annual $100,000 26,380 10% $200,000 47,480 6% $330,000 91,550 12% Rate of return Construct a chice table for interest rates from 0 to 100% a) The firm's minimum attractive rate of return is 8%. Which alternative should be selected? b) [Problem 7-63] If 8% is considered the minimum attractive rate of return, which alternative should be selected using an incremental analysis? 2. X Year Y -$5000 -$5000 0 -3000 2000 4000 2000 2000 2000 4000 3 4000 Problem 8-5] A stockbroker has proposed two investments in low-rated corporate bonds paying high interest rates and selling at steep discounts (junk bond). The bonds are rated as equally risky and both mature in 15 years. 3. Stated Value Bond Current Market Price with Commission Annual Interest Payment $67 $1000 $1000 GenDev RJR $480 $630 $98 a) Construct a choice table for interest rates from 0 to 100% b) Which, if any, of the bonds should you buy if your MARR is 20% c) Are there professional ethics standards for stock brokers in the U.S.? What are some common ethical pitfalls 4. [Problem 8-21] A firm is considering the following alternatives., as well as a fifth choice, do nothing. Each alternative has a 5-year useful life 2 $130,000 38,780 15% 3 4 Initial Costs Uniform annual $100,000 26,380 10% $200,000 47,480 6% $330,000 91,550 12% Rate of return Construct a chice table for interest rates from 0 to 100% a) The firm's minimum attractive rate of return is 8%. Which alternative should be selected? b)