8. What is the Payback Period for the following cash flows (CFFA): today, - $7,200; end of year one, + $3,000; end of year two, + $4,200; end of year three, + $200; and end of year four, $1,000. A) 3 years B) 2 years C) 2.34 years D) 2.9 years E) 3.2 years 9.A risk premium is defined as A) the total market rate of return for the financial asset that an investor pays B) the risk-free rate C) the market return minus the S&P 500 D) the additional return over and above the risk-free rate resulting from bearing risk. 10. What is the profitable index (PI) if you invest $40,000 today and the sum of the time value of money future Cash Flows from Assets (CFFA) is $30,500? Should you accept or reject the project? A) 0.238 / Reject B) 0.762 / Accept C) 0.762 / Reject D) 1.31 / Accept