Bank A plans to borrow $ 1,000,000 from bank B. The amount will actually be borrowed one year from now, and repaid after two more years. If the loan is considered risk-free, what is the interest rate bank A will be paying to bank B?

1. 
   

Suppose you have a risk-free project with the following cash flows:

Year	Cash flow
1	-2,000,000
2	800,000
3	1,000,000
4	700,000

What is the net present value of the project? How about its internal rate of return?