Question 3: For your 21st birthday, your grandfather offers you a gift of $1,000 today. However, you have the choice of waiting 3 years and receiving $1,500 or waiting 5 years and receiving $3,000. If your money grows at a rate of 8% compounded annually, which alternative should you choose? 120 points! Question 4: Two alternatives have the following CFD. Assuming the i 10%, Please calculate [30 points] $55,000 555,000 555,000 535,000 555,000 555,000 555,000 555,000 $55,000 $55,000 ssnsco ssoosm san 000 s 10 Alternative A Alhersatise 430 000 (a) P (Present value) for the two alternatives, which one (if either) should be chosen? (b) A (uniform series of cash flow, Annual worth, Annuity) for the two alternatives, which one is higher? (c) F (Future value) for the two alternatives, which one (if either) should be chosen? 1 Page