Question: Question 7 (1 point) The Camel Company is considering two mutually exclusive projects with the following cash flows. Project A cash flow: Year 0 $-75;

 Question 7 (1 point) The Camel Company is considering two mutually
exclusive projects with the following cash flows. Project A cash flow: Year

Question 7 (1 point) The Camel Company is considering two mutually exclusive projects with the following cash flows. Project A cash flow: Year 0 $-75; Year 1 $30; Year 2 $35; Year 3 $35. Project B cash flow: Year O $-50; Year 1 $25; Year 2 $30; Year 3 $25. Given the discount rate of 11%, which project has the higher profitability index (PI)? Project B Project A Both are equal None of the above Question 8 (1 point) Which of the following is TRUE? T-Bills generally yield a higher return than common stocks. Long-term corporate bonds generally yield a higher return than common stocks. Bonds with higher YTM will sell at a higher market price than otherwise identical bonds with lower YTM. The nominal interest rate exceeds the real interest rate when inflation is greater than zero. None of the above

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