A: Two of your regional managers came up with two small projects to save costs of office supplies at their own offices. The project proposed by manager A needs a cost of $7,779 and it will bring a cash flow of $2,944 a year. The project proposed by manager B needs a cost of $7,737 and it will bring a cash flow of $2,980 a year. Both projects will have a life time of 3 years. The opportunity cost of capital is 7.8% per year. Find the total NPVs of all the proposed projects that your company should adopt.

B) The coupon rate of a bond is 6.1%. It matures in 12 years. The required return rate of the bond is 7.8%. The risk-free interest rate increases by 1.36 percentage points. Consequently, the required return rate of the bond changes by the same amount. Please find the change in the bond's price.