1. Project A has an NPV of -$8,284.88 (i.e., negative $8,284.88) and Project B has an NPV of -$4,371,25 (i.e., negative $4,371,25). Both projects have normal (standard) cash flows and WACC for both projects is 14%. Which of the following statements is correct? a. Project A must have a higher IRR than Project B. b. Project B must have a higher IRR than Project A. c. Both projects have a positive IRR. d. Both projects have a negative IRR. e. Both projects have IRR greater than 14%. f. Both projects have IRR less than 14%. g. None of the answers listed above are correct.

2. Consider a Zerobond (i.e., a bond that pays no coupon payment, meaning that the coupon rate on the bond is 0%) with a par value of $5,000 that will mature exactly 16 years from today. The current YTM of this Zerobond is 7.35%. Two years ago, the YTM of the same Zerobond was 8.61%. Calculate the dollar price increase/decrease (2 decimal places) within the last two years. If the bond falls in price, enter your answer on D2L as a negative value (i.e., put a minus sign before your number with no space between the minus sign and the number). If the bond increases in price, record the dollar amount of the increase.