Question $8(1$ point$)$

Assume the following cash flow in years

$550$

$620$

$750$

$890$

$900$

Terminal value of $25,000$

The current market valuation of the firm is $20,000,$ risk$-$free rate is $5\%.$ What's implied equity risk premium?

$10\mathrm{.}2\%$

$7\mathrm{.}5\%$

$1\mathrm{.}7\%$

$6\mathrm{.}7\%$