Required:

a$.$ Calculate Payback period for each project.

b$.$ Calculate NPV for each project.

c$.$ Two projects are mutually exclusive, Which project A or B is worth to be invested in$?$ Why?

Required:

a$.$ Compute the coupon payment

b$.$ Compute the price of the bond if the opportunity cost is $5$ percent.

c$.$ Does the bond trades at premium? Explain.

NPV

Payback

Accept$/$Reject