1.76points

ItemSkipped

Item 16

Item 16 1.76 points Item Skipped

The Treasury bill rate is 6% and the market risk premium is 7%.

Project	Beta			Internal Rate of Return, %
P		1.00		14
Q		0.00		10
R		2.00		20
S		0.40		11
T		1.70		22

a. What are the project costs of capital for new ventures with betas of 0.75 and 1.98? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

b. Which of the capital investments shown above have positive (non-zero) NPV's? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

check all that apply

• Project Punanswered
• Project Qunanswered
• Project Sunanswered
• Project Tunanswered
• Project Runanswered