8. When comparing two independent projects of equal life, the capital budgeting evaluation technique that ALWAYS identifies the BEST project is:

NPV

IRR

Profitability Index

All three of the techniques listed above will always give the same answer, therefore no one technique is better than any of the others for independent projects.

None of the answers listed above is correct.

A coupon bond that pays interest semi-annually has a par value of $1,000, matures in 5 years, and has a yield to maturity of 10%. The equilibrium price of the bond today will be __________ if the coupon rate is 8%

	$922.78
	$924.16
	$1,075.80
	$1,077.20
	none of the above