1. A T-Bill maturing in 270 days is selling @ 99.90. What is the indicated discount rate?

2. Your division is considering purchasing a new software platform that will increase your bottom line by $5,000/yr. in productivity efficiencies. The software will require a $2.000 upgrade after 3 years and the entire software will become obsolete (be replaced) in six years at which time it can be salvaged (sold) for $1,000. If your cost of capital is 5%, what is the most you would pay for this platform?