When comparing alternatives to unequal lives

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Reference no: EM131886954

1. A bond with a face value of $20,000 was purchased in the market for $18,000. This bond pays an interest rate of 8% per year payable quarterly and it matures 8 years from now. The amount of the last payment (at the end of 8 years) is:

a) $400

b) $18,400

c) $20,000

d) $20,400

2. When comparing alternatives to unequal lives, the alternatives should be compared over:

a) The life of the shortest-lived alternative

b) The life of the longest-lived alternative

c) The least common multiple of their lives

d) An infinite time period

Reference no: EM131886954

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