What is the implied risk premium

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Reference no: EM13286105

A project requires an initial investment outlay of $3,335 and produces cash inflows of $925 for each of five years. If it has a zero NPV and the risk-free rate is 6%, what is the implied risk premium?

A) 6%
B) 4%
C) 8%
D) 10%
E) 12%

Reference no: EM13286105

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