What is the Market Risk Premium if the required return of the market is 7%, risk free rate of 5% and inflation rate of 4.25%?

2- What is the Payback Period of a project with an initial cash outlay of $8,000 and total revenue of $3,000. The estimated life of the project is 5 years.

3- What is the NPV of the project:
Outlay: $10,000
Inflow per year: $2,000
Duration of project: 3 years
Discount rate: 10%

What is the Profitability Index of the project?

4- What is IRR of the project:
Outlay: $8,000
Inflow per year: $2,800
Duration of project: 4 years
Discount rate: 6%

Answer rating: 100% (QA)

The market risk premium is 7 5 2 The market risk premium is the additional return that investors exp... View the full answer