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ook ences The Treasury bill rate is 4% and the market risk premium is 7%. Project P 0 R T Beta 1.0 0 2.0 0.4

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ook ences The Treasury bill rate is 4% and the market risk premium is 7%. Project P 0 R T Beta 1.0 0 2.0 0.4 1.6 Beta 0.75 1.75 Internal Rate of Return, a. What are the project costs of capital for new ventures with betas of 0.75 and 1.75? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 14 6 18 7 20 7 Project P 7 Project Q ? Project R Cost of Capital % 1% 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.) ces a. What are the project costs of capital for new ventures with betas of 0.75 an your answers as a percent rounded to 2 decimal places.) Beta 0.75 1.75 Cost of Capital % % b. Which of the capital investments shown above have positive (non-zero) NPV's3 the box with the question mark to produce a check mark for a correct answer a empty the box for a wrong answer.) ? Project P ? Project Q ? Project R ? Project S ? Project T

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