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Find the market risk premium

If the average annual rate of return for common stocks is 11.7%, and for treasury bills it is 4.0%, what is the market risk premium?

What is the net present value (NPV) of the following cash flows at a discount rate of 9%?

t=0 -250,000

t=1, 100,000

t=2, 150,000

t=3, 200,000

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## Q : Calculating discount and investment rates

We are purchasing a 28-day Treasury bill, during a normal year (non-leap year), and want to find out both the discount rate and the investment rate.