Question
1.76points ItemSkipped Item 16 The Treasury bill rate is 4% and the market risk premium is 8%. Project Beta Internal Rate of Return, % P
1.76points
ItemSkipped
Item 16
The Treasury bill rate is 4% and the market risk premium is 8%.
Project | Beta | Internal Rate of Return, % | |||
P |
| 0.65 |
| 10 |
|
Q |
| 0.00 |
| 10 | |
R |
| 1.00 |
| 12 | |
S |
| 0.05 |
| 11 | |
T |
| 0.60 |
| 14 | |
a. What are the project costs of capital for new ventures with betas of 0.40 and 1.78? (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.)
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 R
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